Faze Clan, a youth-focused on “esports, lifestyle and media platforms” has announced plans to go public by partnering with a “company with a unique mission” that will give it “incredibly valuable value”. – be prepared for this – about $1 Billion.
The number of wild fans usually comes from the way Faze gets to the public. Special-purpose acquisition companies are real shell companies to acquire other companies. These SPAC agreements, as they are known, are the means by which private companies like Faze can go public without slowing down, controlling the initial public donation process. After the merger between the two companies was completed, the first private company replaced SPAC on the stock exchange list.
“The party coming out of the scam is going on in public right now. How crazy is this?” Faze said on Twitter. “This is not the right time for us and the Faze Clan just after covid., it is a very important time for everyone who grew up online with us. We grew with you. This is what we have grown together. Your company, your brand. Except for you, we wouldn’t be here.”
Of course, this is not a “for” company, but a public company owned and operated by its owners. The actual announcement of the expected link on the public listing is a bit of hype, but better.
“Through the proposed business integration, Faze Clan is in a position to become one of the leading digital, social media marketing, and national digital media platforms, focused on youth, and the national media platform and change in the US,” he said. . “After the required company merger, BRPM will change its name to ‘Faze Holdings Inc.’ Parts of the NASDAQ-affiliated companies are expected to be registered under the new FAZE brand.”
According to the Wall Street Journal, this type of contract has become popular over the past year in part because it allows companies to plan businesses – as much as $1 billion – in a way that would not be acceptable with a normal IPO. . The global financial accounting firm KPMG has a detailed explanation of the differences between the two if you are interested in the details.
It’s complicated, but the short version is that SPAC’s performance is faster, sharper, and more profitable (at least for first-time investors) than IPOs, but riskier – and while the Faze Clan is hugely popular, the $1 billion figure isn’t quite the same. carved in stone.
Faze’s face-to-face campaign, like the tweet above, is aimed at its fans who are too young to join the new program. But the company hopes its “connection with [the] hidden public domain” will help it attract traditional investors.
Lee Trink, CEO of Faze said, “We believe Faze Clan is emerging as the cultural voice of youth, a close link in content, sports, entertainment and lifestyle in a digital citizen world.” “This business will provide us with key funding and access to public markets, which will help us expand our platform and finance expansion.”
The relationship between Faze and BRPM is expected to be finalized in the first quarter of 2022. Interestingly, a September Reuters report said the US Securities and Exchange Commission would like to report on the SPAC deal with the latest developments needed. many of them. fall below the minimum NASDAQ entry requirements.