HomeBusinessFaZe Clan secures $22.7M loan from Canadian Investment Bank

FaZe Clan secures $22.7M loan from Canadian Investment Bank

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Canadian Investment Bank, Canaccord Genuity last week announced that the leading Esports organization, FaZe Clan will enter into a loan convertible facility worth $22.7 Million with the bank.

According to the information revealed by the Canaccord Genuity, the bank will act as a financial advisor for FaZe Clan and will get a seat in FaZe Clan’s Board of Directors. The convertible loan facility is different from usual forms of investments, namely in this case the $22.7 Million will be treated as a loan until the Bank (Canaccord) decides to convert it into equity at a later date on the pre-defined equity value of $220 Million. Convertible loans are usually undertaken to receive cash for the time period before they receive money from a larger investment.

According to FaZe Clan, the loan amount will be used as working capital and to meet various other organizational expenses. Currently, FaZe Clan is worth more than $220 Million and is ranked as 4th most valued Esports Brand Worldwide.

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FaZe Clan competes in six competitive games with a full roster of players, coaches, and analysts. FaZe also self produce various entertainment videos and content which they publish regularly.

According to Esports Observer, convertible loans typically bridge the time between a company’s immediate need for funding and a round of larger of investment. Upon conclusion of that bigger round, the loan could convert into equity.

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