FaZe Clan faces delisting due to falling stock prices

North American esports organization FaZe Clan is facing delisting from the Nasdaq stock exchange due to a drop in share prices. As noted in the rules of the exchange, the club may be excluded from the market if the situation does not change for the better.

If a company trades for 30 consecutive business days below the $1 closing floor price, Nasdaq will issue a shortfall notice to the company stating that it has been granted a 180 calendar day "compliance period" to regain compliance with applicable requirements.

If a company fails to address the shortfall in the offer price within the applicable compliance period, Nasdaq staff will issue a delisting letter.

There are several reasons that negatively affect the value of FaZe Clan shares, including the failure to deliver on promised investments and concerns about the availability of cash to cover expenses after the current financial year.

According to a recent report by Forbes magazine , FaZe Clan is in huge financial trouble and could be left without a livelihood as early as 2023.

However, the North American club's troubles extend beyond operations as FaZe Clan's shares continue to tumble. In recent days, the value of one common share has fallen below the psychological mark of $1, which promises even more problems for the organization in the future.

If the price of one share does not rise within a month, FaZe Clan may face delisting on the Nasdaq exchange. It is known that in order to regain compliance, the listing would have to maintain a "closing price of $1 or more for 10 consecutive business days."

The club's problems on the stock exchange may worsen with the end of the six-month quarantine, after which FaZe Clan employees can sell their existing shares. If an outflow of securities occurs, this move could be the final nail in the coffin of the history of the organization on the exchange.