NASDAQ has released a deficiency notice aimed at FaZe Clan as their listed stock falls below a dollar.
One of the biggest gaming organizations in the world, FaZe Clan IPO’d at a billion dollars recently, however, following a cash flow meltdown, the stock prices have plummeted from an all-time high of $20 dollars to $0.89 risking a delist from NASQAD stock exchange.
Upon investigating the downfall of the stock, a simple reason to explain it would be FaZe Clan’s expenses surpassing their profits and as a result, the stock has fallen below a dollar which doesn’t bode well with NASDAQ policies which state that any company with the stock below a dollar for 30 consecutive days risks a deficiency notice.
According to Nasdaq, “If a company trades for 30 consecutive business days below the $1.00 minimum closing bid price requirement, Nasdaq will send a deficiency notice to the company, advising that it has been afforded a ‘compliance period’ of 180 calendar days to regain compliance with the applicable requirements.
“If a company is unable to resolve its bid price deficiency during the applicable compliance period, Nasdaq Staff will issue a delisting letter,” Nasdaq adds. At this point, the company can request a hearing, which will pause the delisting, in order to make an appeal to the exchange.
The stock price fell below a dollar and there are no signs of it surpassing the dollar mark. However, a recent deal between SPAC and FaZe Clan members might see the stock price get positively impacted and as result, they might evade it this time around, however, their finances would require better management in comparison with the last financial year to avoid similar debacles in the future.
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