The founder and leading investors of the esports organisation Faze Clan have put their shares up for sale. The decision was made due to the company's position on the stock exchange. A representative of the club announced this information on social media.
The organisation wants to issue 5.92 million new shares and resell up to 46.98 million existing ones. More than 51% of the club's already-issued shares are registered for resale. This means that the new majority owner will be able to take over the management of Faze.
The club went public on the Nasdaq stock exchange in July 2022, and in August it reached a peak market capitalisation of $1.86 billion when one share cost $20. However, after that, Faze's financial performance went downhill, and in 2022, the organisation suffered a loss of $168.5 million, which led to a drop in the value of shares and now the cost of one is $0.51.
Copenhagen Flames organisation went bankrupt and ceased its operations.