FaZe Clan's value continues to plummet as NASDAQ delisting looms

A new report by VentureBeat's Jordan Fragen has put FaZe Clan's dismal financial performance back in the spotlight, with the company's latest financial statements from June 30th illustrating that the financial situation has become even more tenuous for the American organization.

For context, when Dust2.us last reported on FaZe Clan's valuation and stock price in March, the organization was trading at $0.59 a share, since then the stock has continued its march towards oblivion and is now worth a paltry $0.24. In essence, FaZe's market cap has decreased by more than half in six months.

To really put that number into perspective, VentureBeat highlighted the fact that in FaZe Clan's June 30th financial statement, the organization stated they had $21.2 million in cash on hand. With the market cap being less than the the cash on hand, this essentially means the market values FaZe Clan at $0 and less than the cash in the organization's bank accounts.

This dire news comes as FaZe Clan have 13 days left to return to NASDAQ compliance or face being delisted from the exchange. In order to do so, FaZe Clan's stock price would need to return to trading at $1 or above for ten days. Considering FaZe Clan haven't traded at above $1 since the first week of February, the potential of that seems highly unlikely despite a FaZe spokesperson telling VentureBeat, "We do not expect to be delisted and have taken steps to remedy the current deficiency as needed."

In response to this crisis of market and financial confidence, many ideas have been touted in the press, including a reverse stock split or acquisition by GamesSquare or Enthusiast Gaming, owners of Complexity and Luminosity, respectively. As none of these plans have yet to fruition the next two weeks is a pivotal time for the storied esports brand as it looks to secure a future for itself in difficult headwinds.