The majority shareholders of FaZe Clan are looking to sell their shares

As FaZe Clan continues to face financial difficulties, its founders and key investors are selling their shares in the company.

FaZe Clan is considering issuing up to 5.92 million new shares and reselling up to 46.98 million of its current shares in an effort to improve its sinking common shares. The company is selling up to 51% of its outstanding common stock, which might result in its ownership shifting to a new majority owner. 

B. Riley, CEO Lee Trink, and founder members Temperrr, Banks, and Apex are among the shareholders who have listed their shares for sale. Snoop Dogg has also put close to 300,000 of his shares for sale. The corporation reportedly agreed to offer Snoop Dogg $1.9 million in stock and a seat on the board of directors, as well as $248,000 worth of stock to each of his son’s companies and those owned by his spouse and manager, according to a December 2022 report by Forbes.

FaZe’s downfall continues on Nasdaq

Since going public last year, the gaming and entertainment company FaZe Clan has fallen on hard times. When FaZe went public in July of last year, each share of stock cost around $13. As the majority of the $100 million that was scheduled to be given as liquid money by the investors went into default, the company’s financial situation changed. That change influenced FaZe’s decision to undertake a round of layoffs, which caused its stock price to go even lower.

On January 20, FaZe Holdings’ stock price dropped below $1 for the first time ever. It then continued to fall throughout the course of the next few days. The founder of the esports group 100 Thieves, Matthew “Nadeshot” Haag, asserted that other organizations were also negatively impacted by FaZe Clan’s stock market performance. There have been internal problems at the company, and numerous founding members have publicly criticized how it has treated them. 

These problems have drawn adverse criticism and might be to blame for the further drop in FaZe Clan’s stock price. On March 23, FaZe got a notice from Nasdaq notifying them that for 30 consecutive working days, their common stock had not met the $1 minimum bid price necessary to continue the listing. 

It is unclear what FaZe Clan’s future holds. Still, the company’s decision to put most of its shares up for sale is an obvious indication of the financial difficulties it is experiencing. FaZe Clan has made a number of company-wide promotions in recent months. The organization still fields players from around the world, across multiple games, including CS:GO, PlayerUnknown’s Battlegrounds, Rainbow Six Siege, Valorant, Rocket League, and Nintendo’s Super Smash Bros. Ultimate.

Header: FaZe Clan