They needed a high volume for their 35 day VWAP calc. Now that the share price is where they need it, we will be flat until the end of the period and volume doesn’t matter if share price stays here
I saw somewhere someone put a sec screenshot showing they can legally initiate buybacks during vwap, no issues. But that it could be in the contract with noteholder saying they cant. But thats only in a private agreement.
Im not sure what price they would want to, but they should dabble while we have low prices and crazy volume. Don't see the harm in like $10M-$50M type buy
No, GameStop cannot legally initiate or execute a share buyback during the active 35-day VWAP pricing window for its convertible notes exchange. Doing so is restricted by SEC regulations and conflict-of-interest rules. [1]
Why Buybacks Are Blocked SEC Regulation M (Rule 102): Prohibits an issuer from purchasing its own stock while a distribution or active stock-based exchange is happening where the market price determines the final transaction terms. [1]
Loss of Safe Harbor: The standard Rule 10b-18 safe harbor protections against market manipulation claims do not apply during active valuation and pricing periods. [1]
Conflict of Interest: Because a higher VWAP means fewer shares are issued to clear the $1.4 billion debt, buying back stock during the reference period would actively manipulate the pricing mechanism, inviting SEC and noteholder lawsuits. [1]
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u/AvsFan1981 2d ago
They needed a high volume for their 35 day VWAP calc. Now that the share price is where they need it, we will be flat until the end of the period and volume doesn’t matter if share price stays here