It may surprise some of you to learn that Dan Bilzerian does more than shoot guns and hang out with beautiful women. But, back in 2017, he started IGNITE International Brands, a company self-described as a “global lifestyle brand unlike any other.” The company sells CBD products, vodka, nicotine-based vape pens, and apparel.
In 2019, IGNITE raised $25.8 million during its initial public offering, selling shares at $1.50 (which trade under the ticker BILZF, a reference to Bilzerian’s name). But since their IPO, the company has seen some serious turmoil resulting in a sharp drop in its stock price. For most of 2020, Bilzerian and his associates at IGNITE were playing the blame game, trying to figure out who was at fault for the continuous bottom lines in the negative. However, in 2021, it seems as if the company may have been able to right the ship somewhat. Still, questions remain about the company’s management and future.
What Happened In 2020?
Last year, a lawsuit was brought against Dan Bilzerian by his business partners for allegedly using IGNITE company funds to support his lavish lifestyle. Among the alleged uses of the money were a ping pong table, a photoshoot in the Bahamas, a paintball arena, and a rock-climbing wall.
In October of 2020, Bilzerian addressed these allegations via his Instagram story, referring to the head of IGNITE as an “idiot incompetent president” and saying that that he had “fired his ass.” Probably not the greatest public relations move for garnering investors. Bilzerian also added that he had put $25 million of his own money into the company.
After recording a loss of around $50 million USD in 2019 and then the subsequent turmoil between Bilzerian and the company’s president, many speculated that the company was doomed for bankruptcy. However, after a profitable Q4 in 2020 (recording a positive net income of $3.1 million), the company’s total losses over the year were just $19.7 million.
It seems that IGNITE is on the upswing as their profitability has continued into 2021. Perhaps this company that so many considered to be a bust will have a fruitful future after all.
What’s New In 2021?
On June 3, 2021, IGNITE reported a “positive net income” and “the strongest performing first quarter in the company’s history.” The company credits the turnaround to cost reductions and improvements in sales. And while the positive net income they’re referring to was only $0.1 million, it’s certainly an improvement from their $9.1 million loss in Q1 2020.
IGNITE International (CSE:BILZF) is showing some promise in the early stages of 2021. They’ve hired John Schaefer as the new president and COO, and thus far he and Bilzerian have not had any public beef. Bilzerian has also claimed that the company will double its sales from Q1 2021 in Q2 2021 and will double its sales over Q2 of last year as well.
The company seems optimistic about its prospects post-COVID and it seems that Dan Bilzerian’s CBD/vodka brand may be here to stay.