The stock market bull was not weighed: Clan FaZe is looking for a way out of the stock market.
Last year, the globally successful Clan Faze from Los Angeles competed to establish e-sports on the US technology exchange NASDAQ. But now the market value of almost one billion dollars has become less than 50 million. And NASDAQ is threatening evictions for violating guidelines, like Sports-Business-Journal reported.
What happened? A share of Faze Clan changed hands on August 30, 2022 for around $25. But from this record it should go downhill steeply by mid-March this year. The 10th saw the previous low of just $0.37 after breaking the full dollar barrier on the 7th in a fall. The stock has since recovered minimally and is trading at 67 cents.
And exactly here lies the problem: From NASDAQ’s point of view, stocks traded on their platform must have a certain minimum value. The threshold is one dollar. If a file falls below this value for a longer period of time, as is the case with Clan Faze, there is a risk of being excluded from trading.
The Los Angeles company now received mail: On Notice of Delisting
threat of expulsion) of the NASDAQ. This will challenge Clan Faze to bring the stock value back above $1 within 180 days and keep it there for at least 10 days.
What was the idea behind the IPO? To put it simply, Clan Faze wanted to monetize the crowds of fans around their teams, streamers and content creators.
Why did the plan go wrong? It is certainly not just one factor that caused Clan Faze to fail, but according to the portal it was also a decisive factor Sports-Business-Journalthat there has been a lull in investment in esports over the past year.
What is Clan Faze up to now? More details are not known, but according to Sports-Business-Journal it currently looks as if Clan Faze is collecting money from outside the stock exchange in order to buy itself out. So it seems that the LA company wants to leave the NASDAQ voluntarily before it is kicked out.
What do you say about the story? Do you think that e-sports have nothing to do with stock exchange trading? Or do you think that such a development, gaming and its communities could be good as stocks in different constellations? Tell us about your business ideas!
