Home Madrid Economy FaZe Clan Secures $22.7M Investment Loan From Canadian Loan Company – ARCHIVES

FaZe Clan Secures $22.7M Investment Loan From Canadian Loan Company – ARCHIVES

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Mentioned in this article

  • FaZe Clan has entered into a convertible loan facility worth US$22.7 million.
  • The loan is convertible at a pre-cash principal value of $220 million.
  • Canaccord Genuity acted as exclusive financial advisor for this loan.

Canaccord Genuity, a Canadian investment bank, announced last week that the esports organization FaZe-Clan entered into a convertible loan facility worth $22.7 million. Canaccord Genuity acted as the organization’s exclusive financial advisor for the loan. Along with the loan, the lender secured a seat on FaZe Clan’s board of directors.

A convertible loan gives the lender the option of converting the loan into equity at a contractually specified conversion rate and within a specified time frame. Typically, convertible loans are made to provide liquidity to bridge the gap between when a business receives the convertible loan and when another larger investment round is about to take place. Once the larger series investment is received, the convertible loan is converted into equity.

According to the release, the loan is convertible at a pre-cash equity valuation of $220 million. The loan will be used for working capital and general business purposes.

FaZe Clan is a multi-faceted organization that brings together six competitive teams in various games, as well as creates entertaining content for viewers.

While some have said this round of investment and the next could be used to build an esports headquarters and training center, FaZe Clan hinted that they might not be interested in such ideas.

Erik Anderson spoke to The Esports Observer on building esports facilities last August.

“I understand why some teams put these facilities in place,” Anderson said. “[However]there is ample training camp space for our teams to use [while] travel around the world. For us, we have a lot of players across the world, so it’s more logistically difficult to have something until we consolidate everyone in one place. We don’t think that’s entirely necessary at this time.