Things aren’t looking good for FaZe Clan’s market value. The organisation of esports professionals and gaming influencers began trading on Nasdaq (an American based stock exchange) last July, becoming one of only a few esports companies on the market.
However, just six months down the road, its stock is dropping and then dropping some more.
In fact, at the time of writing, its stock is sitting at $0.75 per share (see header above).
Meanwhile, at its peak, FaZe Clan’s stock was listed as $20 per share, but that was back in August.
With this trend in value decline, FaZe is now at risk of being delisted by Nasdaq.
As reported by Dexerto, if a company trades for 30 consecutive business days below the required $1.00 closing bid price – something FaZe Clan has now done for the last few days – it will be sent a deficiency notice by Nasdaq.
Any company that receives such a notice will be given a “compliance period” that lasts 180 days. During this period, the listing would need to maintain “a closing bid price of $1.00 or more for 10 consecutive business days”.
“If a company is unable to resolve its bid price deficiency during the applicable compliance period, Nasdaq Staff will issue a delisting letter,” Nasdaq states.
Along with its foray into the stock market, FaZe Clan has been hit by several controversies over the years. In 2021, it kicked out a member for a crypto scam. Meanwhile, last year FaZe Clan member Cented was booted out for using abusive and discriminatory language.
www.eurogamer.net
