Poker player turned Cannabis Entrepreneur, and self-proclaimed "King of Instagram" Dan Bilzerian is watching his cannabis brand "Ignite" go up in flames.
After Bilzerian's cannabis brand Ignite International Brands, Ltd posted its annual report last month for 2019 at the Canadian Stock Exchange; the report reflected $67 million (CAD) in losses. Under the current rate of exchange, this equates roughly $ 50 million USD. In a sector that seems to be thriving, many are wondering WTF happened here.
According to Ignite's filing, the company was spectacular at raising money in the form of debt as the report showed $19.9 million from "convertible debt," $25 million from "proceeds of issuance of shares, and $23.7 million from a "short-term promissory note," according to Forbes.
The biggest question here is, how does the Ignite Brand plan to stay afloat after horrible losses in 2019 to profit during a pandemic 2020? Here's what the company's Board of Directors had to say in the matter:
"The Company will need to raise capital in order to fund its operations and continue its existing and prospective expansion into strategic markets. This need may be adversely impacted by uncertain capital market conditions, including those created by the COVID—19 pandemic, an inability to secure strategic partnerships in key markets, and an unfavorable perception of the IGNITE brand."
"Although the Company has been successful in the past in obtaining financing, there is no assurance that it will be able to obtain adequate financing in the future or that such financing will be on terms that are acceptable to the Company," the Board continued. "The uncertainty of the Company's ability to achieve profitable operations and its success in raising additional capital funding may cast significant doubt on the Company's ability to continue as a going concern."
For the latest in cannabis news and trends peep what Cookies Berner and Rapper Rick Ross are cooking up with new cannabis brand Collins Ave.
Source: Forbes
