The GameStop Squeeze © 2021 www.onepagethinking.net Top Targets Market Disruptors Financial Establishment Government THE GAMESTOP U.S. Asset Managers, Hedge In 2020, hedge funds “shorted” GameStop Traders & Online Online Forums and Traditional - Meme Funds and Private Equity Firms Legislators and Regulators by borrowing shares from owners and of Trading Platforms Influencers Dealer Firms the stock, and selling the borrowed shares to Purpose: Purpose: Concern: “Losing Their Shirts” over Short Concern: Customer Solvency to Cover Purpose: Profit Motive Concern: Possible and Integrity of buyers (e.g., for $20), with the expectation that the Improve Operating and Online Investment Community Positions That Went Contrary to Expectations Margin Calls on Short Sale Positions Stock Markets Financial Performance GameStop stock price would decline sharply (e.g., Novice Day Traders Maplelane Capita U.S. Securities and Exchange Commission to $2), at which point shares could be purchased GameStop r/WallStreetBets Platform that That Lost 45% of its Value Hosts Stock Trading Discussions JP Morgan Chase Enforces Prohibition on Manipulation of U.S. Stock Markets Retailer Experienced Retail Due to Short-Stock Positions Large U.S. Financial Services Institution in the market, returned to the lender, turning a Investors and Prime Broker to Hedge Funds Financial Industry profit on the short. But in late January 2021, AMC Entertainment Management U.S. Department of Justice Movie Theater Chain TV Personality, Billionaire Investor, Prosecutes Criminal Cases of Regulatory Authority (FINRA) individual retail traders purchased GameStop Mavericks NBA Franchise Owner Gabe Plotkin-Managed Hedge Fund Commission-Free, That Lost 53% on its Short-Stock Positions Market Manipulation Regulates Broker-Dealers stock in a frenzy spurred on by social media, which Electronic Trading Platform BlackBerry YouTube Introduction Developer triggered a spike in demand and pushed the Key Players Stock Trading Videos Citron Research Large U.S. Financial Services Institution Hedge Fund and Prime Broker to Hedge Funds Federal Reserve Board U.S. Congress price to unexpected highs (e.g., $480) unrelated to Commission-Free, Regulates Margin Requirements Oversees Stock Market Integrity Bed Bath & Beyond Online Day-Trading Platform GameStop’s fundamental economics. Hedge Home Goods Retailer Tesla and Space X Founder and CEO, Billionaire Investor D1 Capital funds that shorted the stock were hit with margin Apex Lost 20% of its Value Due to Short-Stock Positions Credit Suisse U.S. Treasury Department Investigates Stock Exchanges 1 calls by lender/brokers and their “short squeeze” Clearinghouse that Facilitates Yahoo! Finance Large Swiss Financial Institution Self-Regulate Securities Markets Telecom Equipment Trades for Online Brokerages Online Platform for Stock Trading Discussions Point72 And Prime Broker to Hedge Funds Behavior in the U.S. Stock Markets WHO IS losses made global headlines. GAMESTOP? Relationships Relationships Ecosystem of GameStop Corp. (a Delaware Corporation) Customers Capital Financials Suppliers 1. Suspended Debt Structure Equity Structure Bond Financing Bond Professional in 2020 Debt and Lease Obligations | Ba2 (Moody’s), B+ (S&P), as of Feb 2020 Common Equity Financing Public Debt Services 2. -$5.31 Loss Per Asset-Based Revolving Credit Facility Senior Notes Operating Leases Program Share Data Class A Common Stock Holders Share (2019) Deloitte & Authorized: 420M Interest Rate: 0.25% to Borrowing Base: 90% Operating Lease Liabilities: Working Capital Authorized/Outstanding: Authorized: $300M Stock Exchange: NYSE Price (as of 2/1/21): $225 Authorized: 300M Shares Commercial Touché 3. $470.9M Total (with $200M Expansion 0.5% for Prime-Rate of Inventory and Credit $475M/$419.8M $529.3M Financing Expiration: None Ticker: GME 52-wk Range: $2.57 - $483.00 Issued: 64.3M Shares Audit Services Net Loss ($673M in ForeignFeature Currency & $50M Letter and- Loans; 1.25% to 1.5% Card Receivables Maturity: March 2021 Remaining Lease Term: 4.7 Banks 2018) Balance: $279.9M (as of 4Q19) Record Holders: 1,425 Interestof-Credit Rate Sub Derivatives-Limit) for LIBOR Loans Maturity: Nov 2022 Interest Rate: 6.75% years average : None EPS (Trailing 12 mos): -$4.22 Equity Capital The Richards 4. Stock Price Drops Significant to $2.57 in April ‘20 Group Governance Shareholders Advertising Technology Legal Governance Corporate Matters Fidelity Services IT Human Resources Finance and Accounting Real Estate/Leases Management Software Licenses and Research Troutman Kathy Vrabeck (Chair, C) Raul Fernandez (A) William Simon (A, NCG) Committees: Talent Acquisition FP&A Sales of New Pepper Professional Audit (A), IT Equipment Intellectual Property Video Games 13.67% M&A Legal Services Lizabeth Dunn (C, NCG) Reginald Fils-Aimé (NCG) Carrie Teffner (A) Compensation (C), and Gaming BlackRock Fund Services Nominating & HR Information Systems Internal Audit IT Infrastructure Employment Law Consoles Customers Paul Evans (A) George Sherman James Symancyk (C) Advisors Corporate Digital New Products Kurt Wolf (NCG) Thomas N. Kelly, Jr. (Retiring) Jerome L. Davis (Retiring) Governance (NCG) 11.32% Sales of Talent Development Insurance Contract Management Omni-Channel Initiatives New Gaming Vendors Video Game Management Team Vanguard Console Systems Group George Sherman Daniel J. Kaufman Bernard Raymond Colpitts, Jr. Compensation Accounting Analytics Corporate Governance Video Game Supplies Customers 7.43% Platform Chief Executive Officer EVP and Chief Transformation Officer SVP and Chief Accounting Officer E-Commerce Benefits Investor Relations Susquehanna Manufacturers James A. Bell Frank M. Hamlin Angela Venuk Online Marketing Supply Chain New Gaming EVP and Chief Financial Officer EVP and Chief Customer Officer Vice President, Chief Information Officer Sales of Used Software Financial Group PC Diversity & Inclusion Treasury/Cash Management Customer Merchandising Video Games Customers 6.27% Manufacturers Dan Reed Lisa Keglovitz Licenses of the Corporate Counsel and General Senior Vice President, Human Matt Francis and Gaming Dimensional Incoming Chief Technology Officer Advertising and Marketing Supplier Relations Consoles Rights to Secretary Resources Employee Engagement Financial Reporting Used Products Fund Advisors Major Console Incorporate Manufacturers Customer Experience Procurement & Inventory 5.66% TV, Movie, Dhritiman Saha Chris R. Homester Used Gaming Gaming, and Chief Digital Officer EVP and Chief Merchandising Officer Culture Tax Store Management Management Systems Senvest Pop Culture Systems Customers Management Media Images into 5.18% GameStop Operations

GameStop Ecosystem Companies Products Used Gaming Must Asset Television Stores Stores Stores Stores Sales and Gifts Software Management Industry of PowerUp Customers 4.73% 3642 Physical Retail Stores 33 Pop-Culture 299 Physical Retail Stores 55 Pop-Culture 426 Physical Retail Stores 55 Pop-Culture 1152 Physical Retail Stores 55 Pop-Culture SSgA Funds Movie Industry 300+ in TX, CA; 200+ in FL; 100+ Themed Themed Collectibles 383 in AUS, 43 in NZ Themed Collectibles 413 in France, 343 in Italy, 199 in Themed Collectibles Memberships PowerUp Loyalty in GA, IL, NY, NC, OH, PA, VA Germany Management Collectibles Stores Stores Stores Program Video Game Stores E-Commerce Properties All International Regions E-Commerce Properties All International Regions All International Regions Trade-Ins of 3.74% E-Commerce Properties E-Commerce Properties Pre-Owned Industry Paid Sales of Merchandise Video Games Permit Capital and Gaming Subscribers Software Video Game 2.80% Supplies Collectibles Products Software and Digital Products Other Consoles Publishers and Hardware and Accessories Free Distributors (for Credit Toward New Video Game Gaming Software Collectibles Apparel Toys Downloadable Content Prepaid Digital New Products or Subscribers Paradice Systems Cash) Investment Accessories Network Points Cards Prepaid Gadgets Electronics (World’s Leading Print and Digital Management Controllers, Gaming Headsets, (In-Game Digital Currency) Subscription Cards (Loyalty Program with Trade-In Program Pre-Owned Video Video Game Publication) Virtual Reality Products, Memory 42 Million Members) 2.63% Game Systems Cards Other Collectible-Related Items Digitally-Downloadable Gaming Software Microsoft Gaming Institutional Console Ownership Competitors Competitors Competitors Competitors Electronic Arts Owners 120.34% Sony Nintendo Saturn Wal-Mart Stores .com K-Mart JB HiFi Take-Two Video Game Interactive Amazon.com BestBuy FNAC Carrefour Media Markt Software Target BestBuy Target 2 Amazon.com Auchan Owners WHAT IS A 1 Economic Attributes of the Short Sale SHORT SALE? SHORT SELLING EXPLAINED THE UNDERLYING SHARES: Where do GameStop shares that will SHORT SELLING “Shorting” a stock describes a finance practice in be shorted come from? The underlying GameStop shares come from 2 Loan of 1 GameStop Short Seller’s Fees and which an investor (the “Short Seller”) borrows a (a) shares owned by the broker for its own account or (b) shares owned Fee Range GameStop Shares Shares Proceeds share from a lender/broker and immediately sells by other customers of the broker who entrust them to the broker’s care. to be Shorted Owned by 2 the borrowed share in the open market, hoping to Broker’s Short Seller Posts Cash Collateral Up to 150% of Spot 2 BORROWING SHARES VIA MARGIN ACCOUNT. To sell short, the Post of Margin buy it back later at a lower price, return the 2 Customer with Broker Equal to a Percentage Share Price customer must have a margin account with his or her broker. A margin (i.e., Collateral) borrowed share (plus interest) to the but Held by of the Value of the Borrowed account allows the customer to trade shares on credit, provided the Short lender/broker, and keep the difference as profit. A Broker Broker Shares Short Seller posts 150% of the value of the short sale as the initial Seller Short Seller engages in this practice when it 1 3 collateral or margin. If the value of the position falls below maintenance 3 Short Seller Pays Stock Loan Fee 30-50% per annum believes the market price of the shares of public Pays Periodic Interest GameStop margin requirements, the Short Seller will and be asked to close the Shares Periodically to Broker in Exchange (much higher than the company is inflated or over-valued when and Stock Loan Fees for Borrowed GameStop Shares normal 0.3% per position or increase funds in the margin account (a ). on the Loaned Shares Owned compared to the company’s “fundamentals” (i.e., Directly by annum rate due to financial metrics) that otherwise suggest the 3 Broker limited supply of INTEREST AND FEES ON STOCK LOAN: In exchange for the loan of GameStop shares) company’s prospects are dim. GameStop, a GameStop shares, the Short Seller pays a Stock Loan Fee (~0.3% per 4 Sale of physical and online retail store that sells new and year) to the lending broker. When many investors short a stock, the fee GameStop 3 used video games and gaming consoles, is one may go up to 20-50% per year. The Short Seller is obligated to return Shares on Open Short Seller Pays Interest to Broker 10% per annum such company to many investors. Despite its Market The Short Sale the borrowed GameStop shares to the Broker on or before by the summer announcement of a collaboration expiration of any holding period agreed with the lending broker. 4 Proceeds to Short Seller From the Current Share Price agreement reached with Microsoft to overhaul its Stock 4 Sale of the Borrowed GameStop store to feature Xbox gaming consoles, Exchange SALE OF BORROWED SHARES ON OPEN MARKET: Immediately Shares on the Open Market GameStop stock traded within a band of $2.57 to after the GameStop shares are loaned to the Short Seller, the Short $22.35 per share due to low consumer spending Seller sells the borrowed shares on the stock exchange at the current 3 and foot traffic during the COVID pandemic. market price, in the same way a normal share would be sold. WHAT 6 HAPPENED? GAMESTOP MARKET DISRUPTION CLOSING OUT THE SHORT-STOCK POSITION : When the Short CLOSING THE SHORT POSITION Economic Attributes of Closing a Short Sale Position Seller wishes or is required to close its short position (either because Over a three week period, the stock price of 8 GameStop surged over 1,000% from a low of the conditions are right for the Short Seller to realize a profit from this 6 Repayment of GameStop GameStop Shares Shares Short Seller’s Fees & $17.08 on Jan. 8, to a high of $483 on Jan. 28 for tactic, the position no longer holds the promise of a profit and the Fee Range Owned by Proceeds reasons unrelated to the financial metrics of the carrying fees on the loan are seen as wasteful, or the lending broker Return of Cash 6 Broker’s has made a costly margin call), the Short Seller buys on the open Margin 5 company. Retail traders communicating in the Short Seller Buys GameStop market the same number of GameStop shares it borrowed. Customer Current Market Price Reddit subgroup r/WallStreetBets rallied to but Held by Shares on the Open Market purchase GameStop shares, driving up the share 7 Short 7 Payment of Broker Broker No Fee Associated with PAYMENT OF OUTSTANDING FEES AND INTEREST: If there are any Seller 6 Short Seller Repays Borrowed price and undermining the economics of short Outstanding Fees, Repayment of 8 GameStop Shares to the Lender fees or interest charges outstanding on the stock loan (and if Interest, and Dividends Borrowed Shares; positions taken by hedge funds and other GameStop Broker; Broker Releases Cash Accruing to the Shares Return of Cash institutional investors. While these retail investors GameStop paid any dividends during the term of the short sale Shares Collateral to Short Seller Collateral were motivated by the opportunity for gains on position), the Short Seller must pay the fees and interest (and any During the Term of the Owned Short Sale their investments, other driving factors may have dividends) to the Broker at the time it closes out its short position. Directly by included general anger toward hedge funds with 8 Broker 7 Varies DELIVER SHARES TO BROKER: After the Short Seller buys (Dividend + the intention of forcing losses for those funds Short Seller Pays Any Outstanding Outstanding Fees GameStop shares equal to the number it borrowed, it delivers those 5 Open Market Sale of through a “short squeeze” of GameStop’s stock, Fees and Accrued Dividends mentioned in No. 3 shares to the lending Broker in satisfaction of the stock loan. Upon GameStop Shares Above)

The GameStop Rally enhanced by increased access to the market and receipt of the GameStop shares, the Broker will return to the Short the ability of retail investors to communicate Stock Seller all cash margin it had posted with the lender broker as collateral. 4 instantaneously through social media. Exchange NOW WHAT? A SWIRL OF RESPONSES Top Targets Market Disruptors Financial Establishment Government The turbulence in the stock markets resulting from Meme Stocks Retail Traders & Online Trading Platforms Web Forums & Influencers Asset Management, Hedge Funds & Private Equity Firms Traditional Firms a small group of shares and the In a vacuum, there is nothing “We need to understand deeply loss of billions by institutional asset managers concerning or uncommon what happened before we go to have spurred corrective actions and probes, about a squeeze. They don’t action, but certainly we’re looking including online trading platforms restricting happen all the time, but they carefully at these events.” definitely happen more , Treasury

The customer’s ability to trade in especially volatile Jan 31, 2021 frequently than a cicada hatch. Secretary, Feb 4, 2021 securities, asset managers abandoning certain J.P. Morgan, Jan 29, 2021

Aftermath short-sale trading positions, congressional and executive agency investigations into the effective functioning of the stock market, and litigation. Law & Crime 5 Trading Volumes Company Industry and Company Information Short Interest - % of Float 4Q20 Trading Range 2021 Trading Range News Events WHO IS NEXT? (Stock Exchange and Ticker) (As of 1/15/21) SIMILAR STOCKS Avg 20-Day v. 200 Day Bank of America says GameStop’s epic short After much attention went to GameStop’s high The largest video retailer in the world, with GameStop Corp. squeeze rally sparked by traders on Reddit’s over 5500 stores across North America, Europe, 119.5% $5.87 - $$22.35 $17.08 - $483.00 75.2M vs 14.5M short interest, millions of retail traders from NYSE: GME WallStreetBets forum won’t change the company’s and Oceania Reddit’s r/WallStreetBets were led to invest in dismal term outlook. The largest movie theater company in the world, AMC Entertainment has taken advantage of the other stocks hard-hit from the pandemic that had AMC Entertainment Holdings, Inc. with nearly 1000 theaters across North America 78.9% $2.11 to $5.00 $1.91 - $21.36 295.1M vs 41.9M good opportunity to commence an at-the-market NYSE: AMC high short-interest. While these stocks were not and Europe equity offering to capitalize and raise $304.8 million shorted as heavily as GameStop shares, many A legacy cell phone company that currently Neutral financials may hold some investors back, BlackBerry Limited retail traders purchased these shares as part of a specializes in Enterprise Software and the 35.5% $4.37 - $9.00 $6.52 - $28.77 111.7M vs 19.2M but BlackBerry’s transformation from a NYSE: BB “movement to defeat the hedge funds.” These of Things (IoT) manufacturer to software company holds promise. Bed Bath & Beyond will see second-half headwinds stocks have been referred to as “meme stocks” Bed Bath & Beyond Inc. A domestic merchandise retail store, with nearly 65.4% $17.61 - $26.16 $17.70 - $53.90 27.4M vs 12.6M as consumers shift spending towards experiences NYSE: BBBY 1500 stores across North America because, like GameStop, they show patterns of away from things. Meme Stocks Meme extremely volatile trading that are divorced from A Finnish multinational telecommunication and The telecom-equipment maker beat expectations in Nokia Corporation their financial fundamentals. consumer electronics company with nearly 1.1% $3.23 - $5.14 $3.83 - $9.79 195.4M vs 46.6M the fourth quarter but warned 2021 would be a NYSE: NOK 100,000 employees challenging year