FAZE stock drops on filing for issuance of new shares and planned insider sales
FAZE stock is down after an SEC filing in which the esports organization suggested intent to issue further shares of its stock and insider sales.
FAZE stock has been an interesting beast as of late. The esports organization is easily one of the most recognizable in the world, sometimes for better and sometimes for worse. Moreover, while its stock isn’t astronomically priced, it is in a peculiar situation where the stock is nearly impossible to short. Nonetheless, FAZE stock took a dip on the day. This is likely due in major part to a filing in which the company announced intention to issue new shares of its stock and a planned insider sales period.
FAZE filed a report to the SEC of said intent which was formally posted on September 26, 2022. In said report, FAZE declared intent to make a secondary offering of up to 5,923,333 shares available for purchase and circulation. In addition to this secondary offering, FAZE also expressed intent for insider sales of up to 64,035,579 shares. This would also include up to 173,333 stock warrants. On this news, FAZE stock took a drop, dipping from a high of $14.80 USD per share at the start of the day down to a low of $12.40, which it has hovered around since.
FAZE stock has been in a particularly odd position as of late. Some may recall our recent feature going into details about the short risk on FAZE stock. Etrade put the Estimated Borrow Rate for FAZE at 800%, which meant if the company went bankrupt in a year, a short trade on the stock would lose 700%. Even so, other analyses in that same feature suggests that while FAZE is nearly impossible to short, there are also other risks involved. One of those risks mentioned was the possible secondary issuance of stock that seems set to occur. Nonetheless, FAZE’s stock situation could get even more absurd as time passes.
With the company seemingly moving to make a secondary stock offering and allow insider sales, it will be interesting to see how FAZE stock continues to move. Stay tuned as we continue to follow this and further game and tech stock trading news.
TJ Denzer posted a new article, FAZE stock drops on filing for issuance of new shares and planned insider sales