FaZe Clan’s stocks have plummeted after the esports titan went public on the Nasdaq.
Their stock price dropped to $5 after filing a Notice of Effectiveness with the Securities and Exchange Commission (SEC), which once approved, makes them eligible to trade on the open market.
The SEC accepted this application, causing a sudden drop in stock price, alongside overall market conditions.
The peak price for FaZe Clan stocks was originally valued at roughly $20 USD and has since had a 73 percent decline since its all-time high in Aug. 2022.
FaZe Clan’s finances are a frequent topic of discussion throughout the esports community and the gaming juggernaut recently made headlines after the org failed to raise all the money it wanted to after a merger with B. Riley Principal 150 Merger Corp (BRPM), according to an SEC filing.
FaZe planned to raise $218 million but fell short by over $100.2 million, grossly underestimating due to “higher than expected redemptions by BRPM public stockholders and higher than expected expenses in connection with the Business Combination.”
Because of this underestimation, FaZe was restricted in regards to its anticipated growth strategies, alongside any new initiatives it had planned.
“This may cause significant delays in, or limit the scope of, our planned acquisition strategy and our planned international expansion,” FaZe Clan said.
