Faze Clan stock sees unexpected surge after Nasdaq warning
The esports organization Faze Clan recently received a warning from the Nasdaq stock exchange that they were at risk of being delisted, just six months after going public. Despite this, their stock jumped from 0.72$ to 1.02$ in a surprising turn of events.
Many are wondering why Faze Clan's stock has been down and what happened to cause this drop. The company's journey to going public concluded last July with a merger with the B. Riley Principal 150 Merger Corp (BRPM) special purpose acquisition company (SPAC). The deal valued the combined entity, renamed Faze Holdings, at US$725 million.
However, since then, Faze Holdings has seen its stock price fall from a high of US$24.69 on 30th August 2022 to just 75 cents on 26th January 2023. According to Nasdaq rules, any company that fails to close above the US$1 mark for 30 consecutive days is issued a deficiency notice, which can trigger a delisting.
Despite the recent warning, Faze Clan has 180 calendar days to return to compliance and close above US$1 for ten consecutive days. The company, which bills itself as a gaming, lifestyle and media brand, claims to have a fanbase network of approximately 500 million across its combined social platforms.
Despite the impressive following, Faze Clan has never been profitable and relies heavily on external investment. As reported by Forbes, the esports giant had US$43.9 million in cash on hand as of 30th September 2022, enough to fund current operations only until November 2023.
The recent stock jump may be a sign that Faze Clan can turn things around, but the Nasdaq situation points to ongoing issues in the esports sector. Competitive gaming organizations have yet to find a way to turn their large audiences into profit, making it difficult for companies like Faze Clan to remain profitable without external investment.
CS2 News & Roster Changes
Read the latest news and updates about the esports market changes, pro players and teams we like, and explore every story of success.
Update v1.5 Patch Notes
8 months ago
ETRT User Guide (Update 1.5.1)
10 months ago
Update v1.5 Patch Notes
1 year, 2 months ago
siuhy has extended his contract with MOUZ
8 months ago
ETRT User Guide (Update 1.5.1)
10 months ago
Update v1.5 Patch Notes
1 year, 2 months ago
siuhy has extended his contract with MOUZ
1 year, 2 months ago
frozen joins FaZe
1 year, 2 months ago
Twistzz Departs FaZe
1 year, 2 months ago
Striker: Astralis paid $1.5-2M for jabbi and stavn
1 year, 2 months ago
Astralis signs Jabbi and Stavn
1 year, 2 months ago
Fnatic in Talks to Sign matys for $185,000
1 year, 3 months ago
Monte unveils their academy team, MONTE GEN.
1 year, 3 months ago
Vitality Confirms Magisk's Departure: A New Chapter Begins
1 year, 3 months ago
alex Joins NiP: Movistar Riders Bid Farewell
1 year, 3 months ago
Cloud9 Officially Welcomes Boombl4 to the Team
1 year, 3 months ago
IKLA UA Roster Departs from Organization
1 year, 3 months ago
s1mple Takes a Break, sh1ro Steps Down
1 year, 3 months ago
Heroic CS2 Roster Update: Stavn and Jabbi Temporarily Benched
1 year, 3 months ago
Dupreeh Joins Heroic
1 year, 4 months ago
Rumors: Falcons might pay $2M for device
1 year, 4 months ago
cadiaN Departs Heroic: End of an Era
1 year, 4 months ago
Why Cloud9 Should Think Twice Before Signing Boombl4 (Rumors)
1 year, 4 months ago
Apeks Rumors: sense in, STYKO out
1 year, 4 months ago
CS:GO transfers - September 22
1 year, 4 months ago
Rumors: Heroic Might Part Ways with TeSeS
1 year, 4 months ago
blameF extended his contract with Astralis until the end of December 2025
1 year, 4 months ago
Esports Transfers Team Spotlight - B8
1 year, 4 months ago
CS:GO's Top Clutch Players: Who Dominated Clutches in the Past 12 Months
1 year, 4 months ago
Esports Transfers - How Do We Calculate Player Transfer Values?
1 year, 5 months ago
Price Update Announcement! (September 2023)
1 year, 8 months ago
TOP-10 Most Expensive CS:GO players
1 year, 9 months ago
TOP-10 Most Expensive CS:GO players (May 8, 2023)
1 year, 10 months ago
Esports Income: Ropz's Earnings in the Gaming Spotlight
1 year, 11 months ago
ENCE shake up their roster by benching Valde and bringing in HENU as a stand-in
2 years ago
Faze Clan stock sees unexpected surge after Nasdaq warning
2 years ago
IEM Rio Major Pick'Em selections from the top CS:GO players
2 years ago
IEM Rio Major Pick'Em selections from the top CS:GO streamers
2 years ago
Astralis finally completed the Nicolai "device" Reedtz transfer
2 years ago
What are the roles in an esports team?
2 years ago
What is the structure of esports?
2 years ago
What staff do you need for an esports team?
2 years ago
Announcing the Launch of the Esports Transfers Platform
It's not the bottom line... It's the beginning of the Story!
Let's discuss everything on Discord!
