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Friday, July 19, 2024
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FaZe Clan Gains SEC Approval to Go Public

  • The esports company first announced plans to go public in October 2021.
  • A merger would value the combined entity at $1 billion.
FaZe Clan

Esports collective FaZe Clan is one step closer to leveling up after the SEC approved its deal to go public via a merger with a special-purpose acquisition company. 

The company first announced plans to go public in October 2021 through a merger with blank-check company B. Riley Principal 150 Merger Corp., which valued the combined entity at $1 billion.

  • A completed merger would give FaZe the highest valuation ever for an esports company.
  • FaZe would be rebranded as FaZe Holdings Inc. and traded on the Nasdaq index.

However, a deal to go public still needs to clear two major hurdles.

The merger requires approval by BRPM shareholders, who will vote during a special meeting on July 15. In addition, FaZe and BRPM must complete all closing terms of the merger, which include having sufficient funds in BRPM’s trust account.

Funds are needed in case BRPM shareholders decide to close their positions if the merger is approved by at least 36% of the shares.

Ups and Downs

In April, FaZe submitted an amended filing to the SEC indicating that it posted an adjusted EBITDA loss of $28.7 million in FY2021, compared to a projected loss of $19 million.

However, FaZe is still valuable, according to Forbes’ 2022 list of the most valuable esports companies, ranking fourth with a $400 million valuation — a 31% increase compared to 2020.

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