SBJ: FaZe intends to go private

FaZe continues to struggle with the effects of a prolonged financial crisis caused by last year's merge with BRPM and NASDAQ listing. According to the Sports Business Journal report, the club is considering a reverse restructuring to become a private company.

At the end of 2022, FaZe encountered first problems that put the club on the brink of survival According to the publication of the credible Forbes magazine, the organization may go bankrupt by the end of 2023.

The club's latest financial report confirmed that FaZe has enough cash assets to survive until November, which is $43.9 million. Now, the organization has decided to abandon current plans and restructure the company, which will require additional $40 million to $60 million cash injections.

At the same time, FaZe suffered a notable crash on NASDAQ, as one share have closed trading at figures under $1 for a month and a half (since February 7). Potentially, the club can be delisted as it violated established NASDAQ compliancy.

The information on FaZe firing about 20% of its employees amid a prolonged crisis and the collapse of the shares on the stock exchange has also been leaked to media mid-February.

Origin: www.sportsbusinessjournal.com