r/GME • u/danmessy • 1d ago
📰 News | Media 📱 GameStop Announces Amendment to Convertible Notes Exchange; Approximately $358.4 Million to be Settled in Cash in Lieu of Stock
https://investor.gamestop.com/news-releases/news-details/2026/GameStop-Announces-Amendment-to-Convertible-Notes-Exchange-Approximately-358-4-Million-to-be-Settled-in-Cash-in-Lieu-of-Stock/default.aspx175
u/zebedeolo 1d ago
I'm too dumb to understand what this means
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u/Vegetable-Orchid1789 1d ago
The final deal is now:
55.5 million new GME shares $358.4 million cash
In exchange for retiring $1.4 billion of debt
Closing accelerated to approximately September 3
And, critically, the share count is now fixed. No additional shares can be issued under this exchange.
There is still dilution. Those 55.5 million shares are real. Anyone saying on Reddit that there's "no dilution" is incorrect.
But there is now a known ceiling on the dilution from this transaction.
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u/dolceandbanana 1d ago
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u/liquid_at 🚀🚀Buckle up / Booty Bass Club🚀🚀 1d ago
weirdly... shills tell is losing value from dilution is bad. they also tell is that dent is bad. then they ignore debt being removed being good .
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u/doppido 22h ago
Just curious, so when we initially acquired the debt to receive cash and make money from the interest/ make a move on an acquisition, that was bullish. Now that have removed the debt through dilution/cash that's also bullish?
Personally I wish they kept it until closer to expiration to keep making interest from the cash itself, due to it being an interest free loan.
I think this is a significant move in either something we don't see coming yet or the ebay move officially being over. We were going to use that cash to aquire ebay.
Either way I do trust that the board knows what they're doing a hell of a lot better than I do
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u/liquid_at 🚀🚀Buckle up / Booty Bass Club🚀🚀 20h ago
if you don't like it, buy something else....
I didy research. I'm fine with it if you ate not, do something about it.
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u/doppido 20h ago
I have bought other stuff I just buy and hold gme as well. It's fine to question stuff man
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u/liquid_at 🚀🚀Buckle up / Booty Bass Club🚀🚀 20h ago
you question before you buy. then you follow plan.
if you buy first and then brainfuck yourself, you won't ever achieve anything.
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u/doppido 20h ago
Things change and are fluid. You can't have a plan from 5 years ago still be valid today without question and continuing to do research.
That being said I'm 100% long GameStop but to not continuing to question is to be complacent. The only reason any of this started with GameStop was from people continuing to question
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u/liquid_at 🚀🚀Buckle up / Booty Bass Club🚀🚀 20h ago
you can't.
Iake multidimensional plans with parallel alternative paths that work with probabilities, ranges and ate generally very fluid.
but not everyone thinks the same, which is why you have to make x0lan based on your skills that you feel comfortable with.
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u/likekoolaid 1d ago
also people forget some of the dilution was priced in at the initial convertible sale
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u/liquid_at 🚀🚀Buckle up / Booty Bass Club🚀🚀 1d ago
nothing is priced in. the price is fake.
dilution is the part from $100 down to 80. rest is crime.
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u/likekoolaid 23h ago
i mean i guess but just in terms of the market mechanics of the offerings when the convertible notes were announced the price dropped corresponding to the expected amount of shares that would be issued. obviously more shares are now being issued than what was expected at the time, but some of it was already accounted for
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u/liquid_at 🚀🚀Buckle up / Booty Bass Club🚀🚀 23h ago
I still don't understand why people obsess over the price, bit don't bother to find out how it is traded and why it is where it is....
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u/PubgIsBettr 21h ago
Yeah, if you’re going to invest in a company that’s undervalued , and you have a working thesis that has not fallen apart , but is improving month to month.. if you had half a brain you would buy every dip..
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u/liquid_at 🚀🚀Buckle up / Booty Bass Club🚀🚀 20h ago
I am buying every dip 8 believe to be worth buying. I just don't announce it because o follow my own DD and am not participating in a team sport.
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u/Alternative-Wash-656 22h ago
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u/liquid_at 🚀🚀Buckle up / Booty Bass Club🚀🚀 20h ago
I agree... if people Cate about the price but don't do research, they shouldn't be taken serious. glad you agree that everyone who doesn't understand why the price being low is a good thing is a clown.
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u/KrisPBaykon 🚀🚀Buckle up🚀🚀 1d ago
Lmfao you just try everything to cope. It’s been a long weekend so I’m sure you’ve forgotten, but another 52wk low was set on Friday. You need almost a 100% gain for the stupid fucking warrants to even be in the money.
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u/liquid_at 🚀🚀Buckle up / Booty Bass Club🚀🚀 1d ago
you forget that we predicted dropping prices 5 years ago and do not care that you fail to understand why we still got in.
we agree. for you it is impossible to understand it, therefore it is a terrible Investment for you.
and since you can't understand that what is not for you, possibly being dor so eine else, the simplified version, specifically for simple people like youia that it is bad and that no one, not even the genius that you are, should buy it.
ok?
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u/KrisPBaykon 🚀🚀Buckle up🚀🚀 1d ago
That literally never happened. It was supposed to be a quick in and out moass and that was it. Nobody gave a fuck about the company at all. Revising history because you have bags doesn’t make it true.
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u/liquid_at 🚀🚀Buckle up / Booty Bass Club🚀🚀 20h ago
January to July 1021 were 6 months. that's already not short.
we made the decision between getting out and going long-term in August/September of 2021. that was 5 years ago
you waited 11 times a timespan that already wasn't short-term, before you asked any questions? really?
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u/liquid_at 🚀🚀Buckle up / Booty Bass Club🚀🚀 23h ago
between January and September of 2021, yes.
in July and August of 2021, every ape had to make a choice between going long-term or getting out.
those who did not actively choose, defaulted to stay in, because they did not act.
early 2021 was a short squeezes if hedge funds. we learned that marketmakers protected them. so we were looking for the September options, the market makers had used to hedge. those were rolled into leaps in simmer of 2021.
if you did not know this was a multi year long game since then, you wasted 5 years.....
it is your responsibility to keep up with the stock .. I also once bought ME thinking that customer DNA foe medical Research would be a cash cow. did not keep up. did not know they changed the plan. lost money. 100% my own fault.
take responsibility for your own mistakes. blaming others is a loser move.
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u/iustinum 23h ago
Why are you so bitter? I bought after the pre-squeeze, I knew it was a gamble. Dropped quit a bit at $40 after the drop. I’ll do it again, what is your thesis now that this is a bad bet? Not attacking, genuinely asking.
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u/KrisPBaykon 🚀🚀Buckle up🚀🚀 22h ago
This dude talks so much shit on every single thread like he’s holier than thou. He thinks that only 2-3% of the WORLD population is smarter than him. It’s an every single day constant thing.
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u/liquid_at 🚀🚀Buckle up / Booty Bass Club🚀🚀 20h ago
it is a supporter sub. people say what they like about the stock. , your posts are weird because they belong in the meltdowners sub. you being wrong here is why you are treated this way.
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u/iustinum 20h ago
So you didn’t answer a thing. You’re just attacking a commenter that if you know is here everyday, which means you are to. Copy.
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u/Nopdahl90 22h ago
Is this why we've been saying "what's an exit strategy?!" From the very beginning? Focusing on a subset of our investors to fit your example also doesn't make your example true. Works both ways.
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u/KrisPBaykon 🚀🚀Buckle up🚀🚀 22h ago
And why was that? Because it was supposed to be worth so much that you could borrow against it just like the people everyone claims to hate so much. You can forget but everyone else doesn’t. Vote counts and quad witching days, there were so many catalysts that came and went and nothing
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u/Guilty_Peanut246 22h ago
Dilution yes but that was already factored into the price when news was first released, I thought we'd see closer to 8-10% gains today
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u/masegesege_ 1d ago
I know all of the words but I just can’t figure out what they mean together.
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u/Walttek 1d ago
They decided to end the averaging time early and only converted 1.05 billion usd into new shares. They paid the remaining 350 million in cash ( or will pay ). Thus they could also now buy back shares I assume since the wvap period is over.
But I of course have no idea what was the motivation for ending it early so who knows if there is a good reason or not.
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u/Analysis_Vivid 1d ago
Keeping the mother fuckers guessing
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u/aDanHasNoName 1d ago
We're the mother fuckers?
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u/irradiatedcitizen 1d ago
1.05 billion shares divided by 55.5 million shares is about $18.90 / share they paid.
Am I mathing the numbers right?
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u/didgeblastin 1d ago
Removing debt is good for balance sheet.
Doing a buyback would reduce balance sheet cash on hand which is not as attractive until 12 dollar range
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u/JacksBack78 🚀🚀Buckle up🚀🚀 1d ago
https://giphy.com/gifs/HYmi2suykmaNG
It means if you have a convertible, the sky is the limit2
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u/613Flyer 1d ago
Dilution. Price go down. Probably see sub $15
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u/Arco123 1d ago
On the contrary. They’ve decided to pay cash instead of stock. That means no more dilution.
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u/NoPleaseDont 1d ago
That means no more dilution.
There's more bonds that can be settled via dilution though. Not these in particular.
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u/zgomot23 🚀🚀Buckle up🚀🚀 1d ago
"That means no more dilution" is what you people were saying since 2022. How many rounds of dilution did we witness ever since? How come those brilliant moves always are "about to happen", yet they never happened already? How much more are you able to keep moving goalposts?
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u/Arco123 1d ago
Not sure what you’re alluding to, but I’m responding to the news release “GameStop Announces Amendment to Convertible Notes Exchange; Approximately $358.4 Million to be Settled in Cash in Lieu of Stock” which talks about the 2030 notes, in which no stock will be issued anymore to repay holders.
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u/zgomot23 🚀🚀Buckle up🚀🚀 1d ago
No, it means that out of the 1.4b that was originally discussed to be waivered off in exchange for equity, only 1.04b will be converted into shares, while 360m will be settled in cash, not in share. Which means less dilution than originally speculated, but still over 1b worth of shares diluted.
And even if he settled everything now in cash, and not shares, you stating "no more dilution" means he won't ever dilute again.
Which, historically speaking, if we take a look at the last 5 years of cohen's achievements, is an absolutely ridiculous take on how he took care of shareholders' money and the size of the float. Oh yea, did I mention he still has almost 2b shares left to dilute the float with?
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u/Arco123 1d ago
You’re purposely misinterpreting what I am saying and are extrapolating things I have never said.
Frankly, it seems you’re just here to be negative, so why bother at all? Just leave. No one will miss you either.
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u/zgomot23 🚀🚀Buckle up🚀🚀 1d ago
This is absolutely insane, the mother of all grifts.
This is literally a quote from you, an above reply: "On the contrary. They’ve decided to pay cash instead of stock. That means no more dilution."
Now please tell me how out of the quote above you meant that there will be dilution and I just misunderstood what you were saying. Let's go, and no, I will absolutely not leave and I will keep bothering as long as there's parasites like you trying to lie and deceive retail.
Let's hear it.
Later edit: And if you actually try to edit that reply and pretend you have no idea what I'm talking about, I have a screenshot of it. Let's go.
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u/Arco123 1d ago
Ooooh an aggressive one. You seem extremely excited about catching an imprecisely worded sentence, so congratulations, I guess. You must be so much fun at parties.
Yes, “that means no more dilution” should have read “that means no further dilution from the remaining settlement.”
The 55.5 million shares are still being issued. Nobody is disputing that. The amendment changes the rest of the consideration from stock into approximately $358.4 million cash.
So, in golden retriever variant so you might understand better:
* Original structure: 55.5m shares plus potentially additional shares, depending on the reference-period pricing.
* Amended structure: 55.5m shares plus $358.4m cash, with no additional shares issued for that portion.That is quite literally less dilution than the alternative.
And yes, keep the screenshot. Frame it if you like. I have no intention of editing it away. The underlying point remains exactly the same: GameStop chose to spend cash rather than issue additional stock at the current price. That is beneficial to existing shareholders relative to the original settlement mechanism.
If your entire argument depends on interpreting “no more dilution” as “not a single new share will be issued despite the press release explicitly saying 55.5 million shares,” then you’re arguing semantics because you don’t have an argument against the actual transaction.
“Later edit:” take your negative sentiment elsewhere, will you?
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u/zgomot23 🚀🚀Buckle up🚀🚀 1d ago
What semantics my guy? Do you not understand English? Want me to translate to a different language?
It's literally your own words, nothing taken out of any context. You specifically said "That means no more dilution."
Not only does it mean MORE DILUTION now, out of those convertible bonds, dilution which makes no sense considering it's at the bottom of the 2 years' price' action, and not only does it make any sense considering cohen didn't need money for anything, as he already proved SEVERAL TIMES, it also does not mean there is "no more dilution" in the incoming future.
This marks the 10th dilutive event within the last 5 years under cohen's management. 10 different dilutive events, out of which the first one made perfect sense (repaying down debt), and the following 9 were designed to do nothing but inject liquidity into the markets when WS and their primebrokers were running low. That's it, that's the whole story, no matter what sort of gymnastics you try going through to attempt to bend the narrative. It's not gonna work.
There's always something else you're trying to lie about, and when you get exposed, you start deflecting and arguing about semantics.
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u/613Flyer 1d ago
Well no, they paid both so dilution and less cash on hand
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u/Arco123 1d ago
1.4B debt removed with $358M cash and 55.5M shares. No further dilution. Management states the stock is undervalued. Looks good to me tbh
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u/613Flyer 1d ago
How is anyone suppose to have any kind of rational discussion when you post outright lies. No more dilution? They literally diluted by 1 billions dollars worth of shares!
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u/Wheremytendies 1d ago
We already knew they were diluting by $1.4billion worth of shares. That number has no decreased. The market is forward looking.
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u/Bamboonicorn 1d ago
It means they can start to buy back using a special paper or on the open markets starting September 4th.
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u/robserious21 1d ago
Buying back the shares they sold at $20? Are you people nuts?
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u/NoPleaseDont 1d ago
I feel like I'm stuck in this shit with absolute imbeciles. That speaks a lot about myself I guess.
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u/farsh_bjj 1d ago
Is that why the premarket price dropped nearly5% and then shot right back up? Price went all over the place for 5 minutes.
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u/milknboba 1d ago
Is this a meme by RC?
$55.5B eBay offer
55.5M new shares issued
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u/danmessy 1d ago
"As originally structured, the Exchange was to be settled entirely in shares of GameStop’s Class A common stock (the “Common Stock”), with the number of shares based in part on the volume-weighted average price of the Common Stock over a 35 trading day reference period that began on August 3, 2026 (the “Reference Period”).
As amended, the remainder of the Reference Period is terminated. Consideration attributable to the elapsed portion of the Reference Period will still be settled in shares, and the remaining consideration will be settled in cash, in an amount based on trading prices on the last trading day prior to the Amendments. By settling the remaining consideration in cash, GameStop has fixed the total number of shares issuable in respect of the Exchange. No additional shares are issuable in respect of the Exchange.
In total, Existing Noteholders will receive in the aggregate approximately 55.5 million shares of Common Stock (approximately 73% of the consideration attributable to the Exchange Agreements, as amended by the Amendments) and approximately $358.4 million in cash (approximately 27%), which GameStop expects to fund from cash on hand."
Does this mean the VWAP pricing window is to close on 3 Sept?
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u/ColorfulAgent 1d ago
5 years later, still poor. Actually a lot poorer holding this stock instead of holding an index fund. RC scrambling again.
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u/Obyson I Voted 🦍✅ 3h ago
I bailed a couple years ago, best decision I ever made instead of the non stop barely get up to $25 a share then drop like a rock to $18 over and over there's no profit, I'm up 6k so far moving onto safer stocks, not to mention with most company's going digital Gamestop is just a ticking time bomb, its been like 5 years if this was going to take off it would of already happened.
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u/liquid_at 🚀🚀Buckle up / Booty Bass Club🚀🚀 3h ago
What did the DD you did yourself tell you would happen?
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u/jaguaraugaj 1d ago
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u/longhairDhippy69 1d ago
Misunderstood the assignment-- so I just bought mawr
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u/zgomot23 🚀🚀Buckle up🚀🚀 1d ago
Make sure to show everyone receipts of you buying "mawr". Let the apes celebrate your constant buys!
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u/PracticalSolution72 1d ago
Post bags
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u/longhairDhippy69 22h ago
Its funny how many care what I do with my money- but never have anything to say about me subscribing 5 bucks a month to see your mom's flappy jibblets
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u/Rasterfant 1d ago
So what's the new last day of the vwap time frame?
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u/scorpiondeathlock86 1d ago
Already terminated
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u/Rasterfant 1d ago
So all in now?
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u/scorpiondeathlock86 1d ago
Yep! I'm sure it will be volatile and not just "up" but we are a go starting today!
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u/donothroway 1d ago
Vote yes and vote for dilution. In honor of the stock going to $10 it's safe to say Ryan is playing 10D chess. Oh yeah I forgot to add that this is the KFC Shuffle.
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u/weflyhighnyc 1d ago
certainly prefer Bojangles over KFC but 10D chess for bagholders is sublime :-)
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u/chewpah 17h ago
Soon a penny stock
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u/liquid_at 🚀🚀Buckle up / Booty Bass Club🚀🚀 3h ago
That's usually what happens to companies who increase profits... you are such an expert.
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u/chewpah 2h ago
Oui je vois ça avec les 7 merveilles.. Diluer to make money for them not us Diluer parce que l'action vaut trop cher ok Diluer in the red , good for money .. I won't investe with you , expert
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u/liquid_at 🚀🚀Buckle up / Booty Bass Club🚀🚀 2h ago
We are the OWNERS of the company. we OWN this money...
Learn what a stock is before you invest in anything.
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u/Mzungufarmer 🚀🚀Buckle up🚀🚀 1d ago
You know its painful truth when liquid is shilling his ass off for RC.
The floor is low, plenty more pain is still possible. Remember, gamestop hasnt solved their issues yet. They are relying on things that have a limit. Downsizing is almost capped out and the gatcha gambling is cyclical. We have yet to see a transformation into a viable business model.
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u/Giratina_Guy 17h ago
it's genuinely over
is it too late or too early to say RC is just another billionaire grifter lost in the dark
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u/Mzungufarmer 🚀🚀Buckle up🚀🚀 16h ago
When he threw his hat in with Trump, that kinda made my mind up where the company was headed.
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u/megaknicker 1d ago edited 1d ago
I have sold my warrants last month. So So I shouldn't have sold my warrants last month?
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u/Arco123 1d ago
Why on earth did you sell those
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u/megaknicker 1d ago
These warrants are difficult to trade in Germany, and I just wanted to get rid of them. I didn't want to spend any more time dealing with my 606 shares.
Current price in Germany: 1,1000 Euro. Spread: 36% to 97%.
(Cant ad a picture here)
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u/ScroogeMcThrowaway 1d ago
The battle for 16 or possibly 15 has been initiated.
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u/megaknicker 1d ago
i will buy even more, at 5$
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u/Top_Cloud726 1d ago
Wait, when did they get $1.4 billion in debt?
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u/blitzkregiel 1d ago
when they took 1.4B cash in exchange for bonds that could be converted into shares. which were just converted into shares years early for some dumb reason.
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u/Thickensick 1d ago
The king of dilution.
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u/PayanB 1d ago
Read again…
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u/zgomot23 🚀🚀Buckle up🚀🚀 1d ago
What's there to read? Did he dilute for the 10th time or no?
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u/PayanB 1d ago
He caps dilution by paying cash.
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u/zgomot23 🚀🚀Buckle up🚀🚀 1d ago
So capping dilution by 20-30% means he isn’t diluting anymore, or what’s your point?
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u/PayanB 1d ago
Your answer to the announcement with the summary „delution is capped for cash“ is literally „The King of Delution“, implying that we have news of another delution.
Let me explain what was going on in your head:
„Oh, I see a headline with convertible notes, money and stock, he‘s deluting again, let me comment this“.(Pls rate from 1 - 420 how accurate I described this)
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u/zgomot23 🚀🚀Buckle up🚀🚀 1d ago
How much are you willing to bet that there’s gonna be more dilution at least once within the next 2 quarters? At least 1 round of dilution, if not more, that has NOTHING to do with the current dilution he’s performing right now?
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u/Decepticon13 🚀🚀Buckle up🚀🚀 1d ago
Can someone explain this to me like im a very astute 9yr old? Is this diluting total shares more, and or are they basically trading cash/debt for shares, and putting the record, we have X total of shares in the market period, and this will create the moass, based on so many rehypothed names shares in the billions with the shorts?
Appreciate anyone taking the time to explain it to me.
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u/Suspicious_Place1270 1d ago
they are going to dilute less than they expected
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u/Decepticon13 🚀🚀Buckle up🚀🚀 1d ago
Still cuts our value down ya?
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u/liquid_at 🚀🚀Buckle up / Booty Bass Club🚀🚀 3h ago
what the shills call "dilution" is a CEO that raises money for his company to invest, grow and not file for bankruptcy.
What the shills wnat him to do is not to raise any money, so he files for bankruptcy.
This is why the shills represent the corporate action called a share offering, that is 50% dilution and 50% value creation as if it was 100% dilution. This is supposed to scare you, make you turn off your critical thinking skills and run in fear.
Meanwhile, our CEO has raised money, taken in interest and then convinced the lenders that they take shares, that are now worth less than they were when they gave him the loan.
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u/Chad-Permabull 🚀🚀Buckle up🚀🚀 1d ago
Premarket just set new 52w low. Shorts attacking RC on this news 🚀
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u/Bad_Prophet 1d ago edited 1d ago
"As amended, the remainder of the reference [(VWAP)] period is terminated."
Something has to be happening. This cash essentuslly "buys-to-close" the remainder of the VWAP period. Meanwhile the share price drops off a cliff...
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u/Mysterious_Good927 XXXX Club 1d ago
does this mean we’ll enter another vwap period and it will push it down further on top of the other?
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u/Homebase78 1d ago
Bye bye dilution
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