FaZe Shareholders Approve Reverse Stock Split at Annual Meeting

Key insights

6 takeaways

01
FaZe Holdings Inc. shareholders have approved a reverse stock split at a ratio of either 1-for-20 or 1-for-30, with the specific implementation date to be determined.
02
The reverse stock split is a strategic move to regain compliance with Nasdaq’s minimum bid price requirement of $1.00 per share, as the company's stock has consistently traded below this threshold since February 2023.
03
FaZe faces a deadline of September 19, 2023, to meet the $1.00 minimum bid price for ten consecutive business days to avoid potential delisting from the Nasdaq Capital Market.
04
If the stock price remains at approximately $0.50 per share, the reverse split would adjust the trading price to roughly $10.00 per share at a 1-for-20 ratio or $15.00 per share at a 1-for-30 ratio.
05
The reverse stock split will change the share count and price per share, but it will not impact the company's overall market capitalization.
06
Shareholders also ratified the reappointment of Mickie Rosen and Ross Levinsohn as Class I directors until 2026 and confirmed Marcum LLP as the independent accounting firm for the 2023 fiscal year.

Summary

At the 2023 Annual Meeting of Stockholders, FaZe Holdings Inc. shareholders officially approved a reverse stock split of the company’s common stock. The board is authorized to implement the split at a ratio of either 1-for-20 or 1-for-30, with the specific execution date to be determined by the company. This strategic move is designed to address the company’s failure to maintain the $1 minimum bid price required for continued listing on the Nasdaq Capital Market.

The decision follows a formal notification from the Nasdaq Listing Qualifications Department, which warned that the company’s stock had remained below the $1 threshold for 30 consecutive business days. By consolidating shares, the company aims to artificially elevate its per-share price—potentially reaching $10 or $15 depending on the chosen ratio—to regain compliance. While the split will adjust the share price, it will not impact the company’s overall market capitalization. FaZe has until September 19, 2023, to meet the exchange's requirements, with the possibility of requesting an additional 180-day extension if necessary.

Beyond the stock split, shareholders also ratified the reappointment of Mickie Rosen and Ross Levinsohn as Class I directors, extending their terms until 2026. Additionally, the company confirmed the appointment of Marcum LLP as its independent registered public accounting firm for the 2023 fiscal year. These governance actions reflect the company’s ongoing efforts to stabilize its corporate structure and financial standing amidst broader challenges within the esports sector.