FaZe Clan Scores $22.7M Investment Loan From Growing Canadian Firm

| Tags: | Author
FaZe Clan Scores $22.7M Investment Loan From Growing Canadian Firm

FaZe Clan just received a massive cash injection from Canaccord Genuity $22.7 million in the bank.


Fast-growing Canadian investment bank, Canaccord Genuity, announced a partnership last week with FaZe Clan. One of the most popular esports organizations in the world. The partnership takes the form of a brand new convertible loan facility, complete with a $22.7M price tag.

So what does this mean for FaZe Clan? Canaccord Genuity are acting as an “exclusive financial advisor” to the organization for the loan. As a result, the lender now has a seat on FaZe Clan’s current board of directors.

Unlike a normal loan, a convertible loan gives the lender more flexibility. They're able to convert the loan sum into equity at a specified conversion rate. (Usually stipulated within the loan's contract.) These loans are typically made to bring the cash as well as settle how much time it takes for a company to receive the convertible loan, especially if another larger investment is able to move forward. As bigger series investment is received, the convertible loan becomes solid equity.

According to their latest press release, the loan is convertible at a pre-money equity valuation of up to $220M. (That’s a lot of dough!) The loan itself is slated for use as working capital and general corporate purposes.

FaZe Clan may be the most popular esports organization in the world right now. But with the amount of money that is rolling their way, they might end up becoming the richest very soon too.

MORE FROM ESTNN
Warhammer 40k Leagues of Votann Faction Focus Makes the Ancestors Watch in Awe

Follow ESTNN for more esports business and finance news.