American esports organisation FaZe Clan has secured a convertible loan facility worth $22.7M from Canadian investment bank Canaccord Genuity.

As part of the deal, Toronto-based Canaccord Genuity has also been given a seat on FaZe Clan’s board of directors. It seems likely that FaZe Clan has taken the loan to inject some cash prior to another investment round, at which point Canaccord’s loan will be converted to equity.

According to Canaccord, the loan is convertible at a pre-money equity valuation of $220M, and the cash will be used as working capital and for general corporate purposes.

Currently FaZe Clan, which is the fourth most valuable esports organisation in the word according to Forbes, fields teams in Call of Duty, Counter-Strike: Global Offensive, FIFA, Fortnite, PlayerUknown’s Battlegrounds, and Rainbow Six Siege.

The organisation has commercial partnerships in place with G Fuel, Scuf Gaming, SteelSeries, Nissan, HTC, Wix.com and Champion.

AYO.NEWS says:

Interesting… what has FaZe Clan got planned? Its already one of the world’s biggest esports organisations, so whatever it is will probably be significant.

AYO.NEWS says features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited.

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