GameStop shares fell in premarket trading after the company announced it had agreed to exchange about $1.4 billion of zero-coupon convertible notes for Class A shares, allowing the video game retailer to reduce long-term debt without using cash. After the cancellation, CEO Ryan Cohen's GameStop will have about $2.8 billion of convertible debt remaining, including $1.1 billion due in 2030 and $1.7 billion due in 2032. These activities could increase or decrease the market price of the Common Stock or the Notes, the effect of which may be material. Shares fell 7.5% in premarket trading because the convertible note-for-equity swap will flood new shares into the market, with retail traders bearing the brunt of the dilution. The latest regulatory filing shows that GameStop owns 43.4 million shares of the e-commerce platform, representing a stake of about 9.8%.