FaZe Clan stave off NASDAQ delisting via compliance extension
As previously reported by a number of publications, American organization FaZe Clan were set to be delisted on the NASDAQ exchange on September 20th due to its common stock ($FAZE) trading below the $1 per share requirement. However, per a September 20th SEC Filing, the organization have staved off delisting via an agreement with the NASDAQ for a 180-day extension to bring the company back into compliance.
The extension will now see FaZe Clan have until March 18th, 2024 to trade above $1 per share for 30 days in a row. At the time of publication, FaZe Clan is currently trading at $0.15 per share, and has traded continuously below $1.00 since February 8th, 2023.
As part of the extension granted by the NASDAQ, FaZe furnished in writing to the exchange their intentions of performing a reverse stock split "if necessary" in order to bring the trading price back above $1. FaZe Clan's intentions of undergoing a reverse stock split in order to bring its price $1.00 and consolidate the number of shares has been on the agenda for the company since mid-April, however the move has yet to be actioned upon.
Back in April, FaZe Clan's board of directors advised, at most, a 30:1 reverse split which would see $FAZE trade at around $16 per share. Should the same reverse split be done today, $FAZE would only be worth around $4.50, demonstrating how dire FaZe's valuation crisis has been.
Overall, a more extreme reverse split seems to be the only way forward for FaZe as they look to stay afloat amidst a mass exodus of executives and rumors the company only has funds to continue operating until November.