FaZe Clan Might Face NASDAQ Delisting Amidst Stock Price Plunge

FaZe Clan, based in Los Angeles, California, is one of the most popular esports and lifestyle companies. In 2010, the company started as a Call of Duty sniping team and slowly expanded its domain across several esports titles and later entered the content creation industry. Though FaZe Clan has seen their glorious days, the company is in talks online for its plummeting stock prices.

In the latest report by VentureBeat, FaZe Clan's fate is in danger as the company might be on the verge of getting delisted from the NASDAQ stock exchange after it hit its lowest stock price. 

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FaZe Clan Might Get Delisted From the NASDAQ Exchange If It Doesn't Meet Their Compliance 

In 2022, FaZe Clan were able to enter the public market at a $ 725 million valuation with the SPAC merger. Though the esports organisation had the highest valuation, the company couldn't sustain its financial graph. The statement is evident based on the numbers shared by FaZe Clan in their financial report. On comparing the first half of 2022 and 2023, the company's earnings fell by 30% alongside the 50% increase in their net loss.

In March 2023, the company's shares dropped to $0.59, which resulted in a warning since the company must operate for $1 stock price for at least thirty business days in a row. According to the warning, the company must trade above the minimum $1 threshold for ten business days before 19 September, or they will be delisted from the NASDAQ exchange. With the current price at $ 0.23 and less than 15 days left, FaZe Clan might be on the verge of getting delisted.

To save themselves, FaZe Clan might be looking towards several options, such as a reverse stock split or getting acquired by GamesSquare or Enthusiast Gaming. Till now, no official statement has been issued by the company, but in recent talks with GamesBeat, FaZe Clan's spokesperson said:

We do not expect to be delisted and have taken steps to remedy the current deficiency as needed.