Jun 23, 2022  ·  Esports

FaZe Clan's public listing on Nasdaq set to go ahead

by Adam Fitch
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FaZe Clan's public listing on Nasdaq set to go ahead

North American esports organization FaZe Clan is one step closer to listing itself on the Nasdaq.

The listing: The future seemed uncertain for the gaming veterans for a couple of months.

  • The organization revealed in April that its merger with B. Riley Principal 150 Merger Corp., which would result in it becoming a public company, could be in trouble.
  • The original agreement was predicated upon FaZe Clan hitting the financial estimations it had forecasted, though it ended up drastically missing the mark. Its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) for 2021 was $9.7M less than projected and caused a knock-on effect for its forecasts through 2025.
  • The company's S-4 filing has been accepted by the Securities and Exchange Commission (SEC), as per a release published on June 22. Now, it's up to shareholders to vote on the transaction.

The future: What's next for FaZe Clan?

  • The release states that B. Riley Principal 150 Merger Corp. will be rebranded as FaZe Holdings Inc. and it will trade on the Nasdaq under the ticker of 'FAZE.'
  • B. Riley will hold a meeting for its stockholders on July 15 to try and approve its merger with the esports organization. Should approval be achieved, the merger is expected to be finalized "shortly after" — the specific date and time have yet to be disclosed.
  • While this is undeniably a major development in the timeline of FaZe Clan, it's worth noting that going public has not proven to be financially fruitful for many esports companies to date considering their stock prices have almost uniformly declined over time.
  • "The capital from the Business Combination will help us to continue to grow our brand as a leader in esports and the creator economy, and embrace the advent of new digital goods and platforms," said FaZe Clan CEO Lee Trink.