GameStop (GME) shares fall 10.22% premarket after convertible note exchange announcement

GameStop (GME) shares fell 10.22% in premarket trading after the company announced a financing restructuring involving the exchange of approximately $1.4 billion of outstanding convertible senior notes for Class A common stock. The transaction increases the share count based on a 35-day VWAP calculation, raising significant concerns about equity dilution. The company also warned that noteholders may hedge their positions by trading stock, potentially causing near-term volatility.