FaZe Clan: $71.4M of PIPE investment defaults

One thing is clear: It has not been a straightforward process for esports and content creation organization FaZe Clan to go public. In the company’s latest filing, it revealed that $71.4 million of its $100 million backstop commitments defaulted on their obligations.

B. Riley — a major U.S.-based financial institution and sponsor of the SPAC that merged with FaZe — is now on the hook to guarantee FaZe Clan receives at least $100 million. In the filing, B. Riley confirmed it will invest $53.4 million into FaZe to replace the promised funds. B. Riley has contributed over 50% of FaZe’s backstop.