FaZe Clan axe CEO as delisting looms
In the latest shakeup for the struggling esports company, FaZe Clan announced late last night that they had terminated their CEO, Lee Trink, with immediate effect. The dismissal of Trink comes amidst a number of crises at FaZe Clan, with the organization's stock poised to be delisted from the NASDAQ on September 19th after losing nearly 98% of its value after going public in July 2022.
To avoid the potentially devastating delisting, FaZe Clan's stock ($FAZE) would need to trade above $1.00 for ten consecutive business days, however with FaZe trading at $0.22 at the time of writing, such a recovery in investor confidence seems unlikely. This is despite a FaZe spokesperson telling VentureBeat on September 1st, "we do not expect to be delisted and have taken steps to remedy the current deficiency as needed."
Trink's departure from FaZe Clan is the latest in a mass exodus of C-level executives from the organization over the past ten months, alongside a large number of executives and other senior figures. This includes Chairperson of the Board of Directors, Daniel Shribman, who only left the company eleven days ago on August 30th.
In Trink's place, FaZe have announced that Christoph Pachler will take over as Interim CEO of the company. Pachler is also currently acting as Chief Operating Officer and Chief Financial Officer, consolidating three C-level roles under an executive who only joined FaZe a year ago.
Overall, this news is unlikely to inspire investor confidence in FaZe only adding to the company's problems as they look to stay afloat as their rapidly approach the November deadline when they are reportedly set to run out of funds to keep operating.