(This is NOT financial advice!)
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"On March 31, 2022, GameStop Corp. (the “Company” or “GameStop”) announced its plan to request stockholder approval at the upcoming 2022 Annual Meeting of Stockholders (the “Annual Meeting”) for an increase in the number of authorized shares of Class A common stock from 300,000,000 to 1,000,000,000 through an amendment to the Company’s Third Amended and Restated Certificate of Incorporation (the “Charter Amendment”) in order to implement a stock split of the Company’s Class A common stock in the form of a stock dividend and provide flexibility for future corporate needs. GameStop also intends to request stockholder approval at the Annual Meeting for a new incentive plan (the “2022 Equity Plan”) to support future
compensatory equity issuances. If the 2022 Equity Plan is approved by stockholders, it will replace the current GameStop Corp. 2019 Incentive Plan (the “2019 Plan”), and 8,000,000 shares of the Company’s Class A common stock, plus any shares subject to the 2019 Plan that expire, are forfeited, cancelled, terminated or settled in cash after the 2022 Plan is effective, will be available for issuance under the 2022 Plan. GameStop’s Board of Directors has approved both stockholder proposals, but the stock dividend will be contingent on final Board approval."
Definition: A stock split, also called a forward stock split, occurs when a corporation recalls its outstanding shares and issues more than one share for each previously outstanding share.
There are currently 300m AUTHORIZED shares. Of those 300m authorized, only ~75m are ISSUED. Increasing the AUTHORIZED amount would allow a split of the ISSUED shares to not exceed the AUTHORIZED amount.
Stock Dividend. First, shareholders and the board will have to approve a stock split to increase the amount of stock from 300m to 1b. Then from that split, each shareholder will receive a dividend payment in the form of stock.
Gamestop might also be planning on DPO'ing GME-E onto blockchain exchange.
GameStop will issue a carve-out of GME Entertainment, this will be all of the things not associated with traditional e-commerce products. This will issue new stock/tokens onto their blockchain exchange. This precedence was set by the Slack lawsuit ($WORK), and requires a tombstone pr announcement and a share recall/count happens after announcement. I would guess as a dividend they would also issue shares/tokens of GME-E to existing shareholders.
GME's hire posts have had "carve-out experience" in them, here are some examples: