Ignite International Brands Ltd. - Chairman & CEO, Dan Bilzerian
Chairman & CEO, Dan Bilzerian
Source: Analyzepoker
  • Dan Bilzerian is set to acquire C$20 million in debt on behalf of his embattled consumer goods company Ignite International Brands (BILZ)
  • The debt will be purchased from a creditor of the company, which will then be settled via equity issuances
  • Dan will also acquire a $5 million stake through the purchase of 50,000 proportionate voting shares at a price of $0.50 each
  • It’s been a turbulent year, with the departure of Curtis Heffernan as President who then sued the company, as well as the termination of a distribution deal with CannMart
  • Ignite International Brands (BILZ) is currently up 36.11 per cent to $0.49 per share

Dan Bilzerian is set to acquire C$20 million in debt on behalf of his embattled consumer goods company Ignite International Brands (BILZ).

The controversial businessman will purchase the debt from a creditor of the Ontario-based company, which will then be settled via the issuance of 200,000 proportionate voting shares.

Dan will be eligible to exchange these proportionate voting shares for subordinate voting shares on a one-for-200 basis.

The transaction is expected to take place on October 26, subject to approval from the Canadian Securities Exchange.

In addition to the debt purchase, Dan will also acquire a further 50,000 proportionate voting shares at a price of $0.50, representing a 39 per cent premium to Ignite’s closing share price yesterday and a total $5 million investment.

“As we announced last week, we project Ignite to have a profitable fourth quarter and I am very much looking forward to seeing what the company can do in 2021, when it should be operating on all cylinders,” Dan said.

“The new management team is excited to show what it can do in the fourth quarter this year and next year.”

Despite his optimism, Ignite has had a turbulent year, which has driven an overall 64 per cent decline in its share price since the start of January.

Most significantly, the company’s former acting President, Curtis Heffernan, departed on June 8 to “pursue other opportunities.” However, a lawsuit was later filed in which Curtis claimed he had been terminated for sounding the alarm on suspicious corporate spending.

According to the lawsuit, these transactions include a $75,000 paintball field, a $40,000 rock climbing wall, $60,000 worth of “Star Wars guns”, $31,000 in pool renovations, a $50,000 bed frame, a $15,000 ping pong table, and an $88,000 vault.

Dan then hit back, claiming that Curtis “was fired for incompetence and negligence” and said a counter-suit would be brought against him.

More recently, Ignite’s Canadian distribution agreement with CannMart – a subsidiary of Namaste Technologies – was terminated on October 2 after only three months of being signed. CannMart will continue to distribute IGNITE’s products through its outlets across the country, but only until the end of December, 2020.

Ignite International Brands (BILZ) is currently up 36.11 per cent to $0.49 per share.

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