So Long, Lee Trink
The corporate face of FaZe Clan is fired, must resign from the board of directors.
Last night news broke that FaZe Clan CEO Lee Trink was fired. The Board of Directors voted to terminate Trinks’ employment on Sept. 9, according to an announcement.
With the departure of Trink and Faze’s other major shareholder, Daniel Shribman, something big appears to be afoot at FaZe Clan.
Trink holds more than 5M shares of FaZe stock, while Shribman controls around 11M shares. Shribman currently serves as the chief investment officer of B. Riley Financial and the president of B. Riley Principal Investments, and is the largest single shareholder in FaZe Holdings.
FaZe announced approval of a reverse stock split in July, but the company has not pulled the trigger on that and the stock has hit a 52-week low of $0.22 on the Nasdaq recently.
Rumors of negotiations with other companies such as GameSquare and Enthusiast Gaming for a possible buyout or merger have been swirling since last month.
The question is, if the company planned to continue on as a publicly-traded entity, why hasn’t it initiated a reverse stock split given that its deadline for compliance with Nasdaq is coming up fast?
The only conclusion we can draw is that FaZe is negotiating with entities in order to be acquired that could include going private or being owned by another publicly traded company, or that it plans to sell stock to raise additional capital—but the latter is a short-term solution given how much revenue the company generates versus how much it is spending… Og course, it could also be planning to file for bankruptcy protection in federal court… We’ll be exploring this topic this week for sure, so stay tuned.
You can read more about Trink’s termination on The Esports Advocate.