GameStop Gives Shareholders Warrants To Buy Stock At $32

GameStop GME is giving its shareholders something new to play with stock warrants. The company announced it will issue one warrant for every 10 shares held, allowing investors to buy an additional share of GameStop at $32. That price sits about 24% above where the stock closed on Tuesday.

Bondholders aren't being left out either. Holders of GameStop's 2030 and 2032 notes as of the October 3 record date will also receive warrants, calculated on an as converted basis to common stock. The warrants can be exercised anytime between now and October 30.

The move gives investors a potential upside if the stock rallies, but it also adds the possibility of more shares entering the market later on something traders didn't love.

The warrant distribution adds a new chapter to GameStop's ever-colorful story, as the company continues experimenting with ways to reward loyal investors and raise fresh capital.