Following an SEC filing that sparked concern that the owners of FaZe Clan were selling their majority stake, the CEO and other members have clarified that this is not the case.
On May 5, FaZe Clan published an SEC filing, labeled “prospectus reflecting facts events constituting substantive change from last form,” which outlined the issuance of new shares of common stock, and “the resale by certain selling securityholders.”
First reported by The Esports Advocate as the founders and owners “preparing to jump ship”, this characterization was challenged by the FaZe Clan CEO Lee Trink.
“I’ve never sold a share and have no plans to sell,” Trink said. “Friday’s filing is a routine and required update of the original S1 registration statement.”
If you bozos don’t know how to read an SEC document give us a call and we’ll speak slowly and walk you through it. I’ve never sold a share and have no plans to sell. Clickbait and weak “journalism” per usual. Friday’s filing is a routine and required update of the original S1…
— @leetrink (@leetrink) May 10, 2023
FaZe Banks, who was mentioned as one of the owners offering their shares up for sale, also addressed the concerns.
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“No we didn’t [put our shares up for sale]. Not a single one of us have ever sold or listed a single share,” he said on Twitter.
FaZe Clan went public on the Nasdaq exchange in 2022, and their share price peaked at over $20 in August.
At the time of writing, FaZe Clan’s share price is $0.51. This decline prompted a deficiency notice from Nasdaq. To regain compliance, FaZe stock must recover to over $1, and hold that higher price for at least 10 trading days, within 180 days of the warning.
A previous article incorrectly stated that the majority owners of FaZe Clan had in fact put the stock up for sale. The prospectus only outlined that the shares could be sold, as the lock-in period had expired. This does not mean that the shares were in fact put up for sale.