FaZe Clan is flaming out on Nasdaq as Chairman resigns

venturebeat.com:

We're thrilled to announce the return of GamesBeat Next, hosted in San Francisco this October, where we will explore the theme of «Playing the Edge.» Apply to speak here and learn more about sponsorship opportunities here. At the event, we will also announce 25 top game startups as the 2024 Game Changers. Apply or nominate today!

Esports team and lifestyle company, FaZe Clan went public in July 2022 through a SPAC merger at a $725 million valuation. While it’s not the only public esports team, the company is the highest profile — and highest valuation — of the bunch.

However, public scrutiny has not been kind to FaZe Clan. The stock price has plummeted by approximately 97% since it virtually guaranteed its listing via a SPAC (special purpose acquisition company) merger. While esports companies have struggled, none have fallen as far as FaZe.

For the first half of 2023, FaZe reported earning $24.2 million for a net loss of $28.4 million. Compared to the same period in 2022, the company’s earnings fell 30% from $34.6 million and its net losses increased 50% from $18.9 million. While FaZe did decrease its cost of revenues by $3.2 million, its general and administrative costs grew by $8.8 million.

The diminishing revenue and growing costs are hard for investors to overlook, especially with the current economic headwinds. With a current market cap of about $20 million and $21.2 million in cash on hand, the market is essentially valuing FaZe at $0.

The situation became more dire for the former esports darling in recent months. On March 24, 2023, the company warned it was at risk of being delisted from the Nasdaq(FAZE) because its share price fell below the $1 minimum bid for 30 days in a row. To avoid this, FaZe’s stock must