Snoop Dogg has resigned from his position on FaZe Clan‘s board of directors just one year after joining the esports organisation.
As per new a SEC filing on April 4th, FaZe Clan revealed that the celebrity rapper notified the company of his resignation “effective immediately” on March 29th.
The filing also states that Snoop’s resignation was not over “any disagreement with the company or any of its subsidiaries.”
Snoop Dogg was recruited to join the organisation’s board of directors just over one year ago as part of FaZe’s strategy to generate publicity as the company geared up to go public.
As part of the deal, FaZe was allegedly allowed to include Snoop’s social media numbers in the FaZe Clan network while Snoop was awarded $1.9 million in stock. His son and his wife were also given $250K in FaZe stock each.
After debuting on the NASDAQ in July 2022, FaZe’s share price plummeted below $1 in under six months— largely because of several loopholes the organisation used to go public quickly.
In February 2023, FaZe reportedly let go around 20% of its staff after stocks plummeted to a new low. A few weeks later, NASDAQ served FaZe a deficiency letter, threatening to delist the org’s shares.
“[FaZe] failed to comply with the $1 minimum bid price required for continued listing on The NASDAQ Capital Market”, the letter reads. “The Company has been provided an initial period of 180 calendar days, or until September 19, 2023…by which the Company has to regain compliance with the minimum bid price requirement.”
FaZe released its 2022 Q4 financial results at the end of March 2023, reporting a $70 million loss.
Though Snoop’s resignation may seem like another nail in the coffin for FaZe Clan’s future, it may end up being positive for the organisation as it navigates these financial losses given the artist’s steep pay.
Could this be the start of FaZe Clan’s redemption arc?