The founder and main investors of the esports organization Faze Clan have decided to sell their shares. This decision comes as a result of the company's poor performance on the stock market, as announced by a club representative on social media.
The organization plans to issue 5.92 million new shares and resell 46.98 million existing ones. Currently, over 51% of all issued club securities are registered for resale. This means that a new majority owner can take control of Faze Clan.
Faze Clan went public on the Nasdaq exchange in July 2022 and reached a peak market capitalization of $1.86 billion in August, with each share priced at $20. However, the company's financials started to decline, and in 2022, it incurred losses of $168.5 million, leading to a drop in share prices. Currently, their value is at $0.51.