FaZe Clan ownership clarify concerns that they are selling their shares

  ❘   Printed: 2023-05-10T16:22:05

  ❘   Up to date: 2023-05-10T16:22:13

Following an SEC submitting that sparked concern that the house owners of FaZe Clan have been promoting their majority stake, the CEO and different members have clarified that this isn’t the case.

On Could 5, FaZe Clan printed an SEC filing, labeled “prospectus reflecting details occasions constituting substantive change from final kind,” which outlined the issuance of latest shares of frequent inventory, and “the resale by sure promoting securityholders.”

First reported by The Esports Advocate because the founders and house owners “getting ready to leap ship”, this characterization was challenged by the FaZe Clan CEO Lee Trink.

“I’ve by no means bought a share and haven’t any plans to promote,” Trink stated. “Friday’s submitting is a routine and required replace of the unique S1 registration assertion.”

FaZe Banks, who was talked about as one of many house owners providing their shares up on the market, additionally addressed the issues.

“No we didn’t [put our shares up for sale]. Not a single one in every of us have ever bought or listed a single share,” he said on Twitter.

FaZe Clan went public on the Nasdaq alternate in 2022, and their share worth peaked at over $20 in August.

On the time of writing, FaZe Clan’s share worth is $0.51. This decline prompted a deficiency notice from Nasdaq. To regain compliance, FaZe inventory should get better to over $1, and maintain that larger worth for not less than 10 buying and selling days, inside 180 days of the warning.

A earlier article incorrectly acknowledged that almost all house owners of FaZe Clan had the truth is put the replenish on the market. The prospectus solely outlined that the shares could possibly be bought, because the lock-in interval had expired. This doesn’t imply that the shares have been the truth is put up on the market.