FaZe Clan going public

By James Fudge

Esports organization and gaming lifestyle company FaZe Clan announced Monday plans to merge with B. Riley Principal 150 Merger Corp. (NASDAQ: BRPM) to become a publicly-traded company on the NASDAQ through a business combination (private investment in public equity deal, or PIPE) that will see the new entity (to be called "FaZe Holdings Inc," and traded as "FaZe") with an "implied equity valuation of approximately $1B USD," according to a release. This valuation includes "transaction proceeds of approximately $291M (including an estimated $118M in PIPE proceeds)."

FaZe said in its announcement that estimated gross transaction proceeds will total $291M, including $173M in cash from BRPM’s IPO proceeds held in trust (assuming no redemptions), and $118M from committed PIPE investments. The funds will be used to fund growth in multiple sectors, including entertainment, gaming, consumer products, and more.
FaZe CEO Lee Trink will lead the new entity as CEO and Chairman of the Board; Amit Bajaj will serve as Chief Financial Officer; Kai Henry as Chief Strategy Officer; and Tammy Brandt as Chief Legal Officer. While the business combination has been approved by the boards of directors of both FaZe Clan and BRPM, it is still subject to stockholder and U.S. regulatory agencies such as the U.S. Securities and Exchange Commission (SEC). If approved, the deal is expected to close in the first quarter of 2022.

B. Riley Securities, Inc. is serving as a capital markets advisor to BRPM, while Citi is acting as lead financial advisor to FaZe Clan, with support from M. Klein and Company and Evolution Media Capital. White & Case is acting as legal advisor to BRPM, while Skadden, Arps, State, Meagher & Flom LLP is acting as legal advisor to FaZe Clan, with support from McDermott Will & Emery related to the PIPE placement agent.

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