EB to Sell 3.5 Million Shares

Just one day after Electronic Boutique's biggest competitor, Babbage's, announced that it was being acquired by Barnes & Noble, the company announced it had filed to sell 3.5 million shares of common stock on the Nasdaq exchange. Electronic Boutique closed at 23-2/16 on Wednesday (Nasdaq: ELBO). Numbers for the shares as the market closed on Thursday were down 4.42 percent to 22-1/8.

Reuters news service reports that two million of those shares are being offered by the company, and the remaining 1.5 million shares are being offered by the company's largest shareholder, EB Nevada. Electronics Boutique will use the money from the shares for advertising and marketing its Internet offerings, opening more stores, and other purposes. EB currently operates 575 stores throughout the world.