Faze Clan, a US-headquartered online media and lifestyle platform developer that counts video shopping platform developer Ntwrk as an investor, agreed on Monday to a reverse takeover on Monday.
The company is set to merge with B Riley Principal 150 Merger Corp, a special purpose acquisition company that floated on the Nasdaq Capital Market in February this year in a $150m initial public offering.
The deal will be supported by $118m private investment in public equity financing from undisclosed investors. Existing Faze Clan shareholders will own 68% of the merged business at an implied equity valuation of about $1bn.
Faze Clan was originally founded as an esports team but has since expanded into a diversified brand which offers lifestyle and media content in addition to fashion and consumer products.
Unnamed investors supplied $22.7m in convertible debt financing for Faze Clan in February 2020 at a $220m valuation, following undisclosed amounts from investors including Muse Capital and Prototype Capital.
Video shopping platform developer Ntwrk co-led the company’s $40m series A round with Jimmy Iovine two months later at a reported $305m valuation, participating alongside a range of other private investors. Media and communications group Cox Enterprises invested an undisclosed sum in August this year.
