FaZe Clan Stock at Risk of Being Kicked Off Nasdaq

gamerant.com:

Esports organization FaZe Clan is currently in danger of being removed from the Nasdaq stock exchange as they have received a deficiency notice. For those who are unaware, In 2021, FaZe Clan announced entering into a merger with a special purpose acquisition company (SPAC) called B. Riley Principal 150 Merger Corp. The agreement made FaZe Clan a publicly traded company with an equity value of approximately $1 billion. The company also received around $291 million from the deal to fund its expansion plans.

The Nasdaq stock exchange has specific rules that listed companies must follow, including a minimum bid price of $1 per share. If a company's share price falls below this level for 30 consecutive business days, it will receive a deficiency notice. FaZe Clan's share price has been below $1 for 32 trading days, which has resulted in a deficiency notice.

FaZe Clan Has Suspended Mew

To regain compliance with Nasdaq's rules, popular esports organization FaZe Clan must recover its share price to over $1 and maintain that price for ten consecutive trading days within a 180-day period. However, the company's stock price has been declining since August 2022, when it reached an all-time high of over $20 per share. As of March 24, 2023, the stock price stands at just $0.67 per share, which poses a significant challenge for the organization to regain compliance with Nasdaq's minimum bid price requirement.

There are various factors contributing to the decline of FaZe Clan's stock price. One major reason is the impact of the COVID-19 pandemic on the Esports and gaming industry, which has caused financial strain for many companies, including FaZe Clan. As a result, the organization has implemented cost-cutting measures, such as staff