FaZe Clan’s owners and founders put their shares up for sale – Egaxo
Esports organization FaZe Clan has announced that its founders and major investors have put their shares up for sale, as the company’s public stock woes have continued to worsen.
Despite being founded in 2010 and achieving popularity and success in the gaming community, FaZe Clan has faced severe financial issues, which were laid bare when the company went public, reporting a net loss of $168.5M for the financial year.
In an SEC filing on May 5, and first reported by The Esports Advocate, FaZe Clan has proposed issuing up to 5.92M new shares and reselling up to 46.98M existing shares.
Approximately 51% of the total shares of Common Stock outstanding as of April 18, 2023, are being registered for resale under this prospectus. This would mean a new majority owner could take over.
A concern raised in the filing however is that the sale of all these securities, or even just the perception of such a sale, may cause the share price to decline further.
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The organization, which went public on Nasdaq in July 2022, saw its market cap peak at $1.86 billion in August when they reached a share price of over $20, but it has since collapsed to approximately $35.5 million due to financial struggles.
Major stakeholders have offered their shares for sale, including the largest shareholder B. Riley, CEO Lee Trink, as well as founding members of FaZe including Temperrr, Banks and Apex.
Snoop Dogg is also listed among the sellers, with his close to 300,000 shares up for sale.
At the time of writing, FaZe Clan’s share price is $0.51. This low figure prompted a deficiency notice from Nasdaq. To regain compliance, FaZe stock must recover to over $1, and hold that higher price for at least 10 trading days, within 180 days of the warning.