Poker player and internet celebrity Dan Bilzerian has a penchant for spending money, but as the annual report from his cannabis company reveals, he’s not as good at making it.
Bilzerian is the CEO of Ignite International Brands, Ltd., which sells a line of cannabis and CBD products, such as CBD-infused toothpicks. Forbes reports that the company posted $67 million in losses in 2019.
The company, which is listed on the Canadian Stock Exchange, was trading at a peak of $5 a share in 2017 but was down to .94 cents a share as of Friday morning.
According to Forbes, the company stayed afloat in two ways last year, by raising money via debt and selling shares of the company’s stock.
Flush with other people’s money, the company hosted lavish parties but didn’t move much product. For every dollar earned in sales, almost two dollars went towards general and administrative costs.
Bilzerian, the son of millionaire Paul Bilzerian, who served 13-months in prison in the 1980s as a result of filing incomplete disclosures to the U.S. Securities and Exchange Commission, has said the Ignite brand is about “not conforming.”
“I think a big piece of it is about destigmatizing the cannabis industry,” he told London Real in 2019. “People look at cannabis as like, ‘Oh, you smoke weed, you’re a stoner,’ and I’m out here with six per cent body fat.”
Meital Manzuri, a Los Angeles-based cannabis business attorney, told Forbes she is “wondering what’s going on behind the curtain,” with the company.
“They probably expanded too quickly, had loose spending, bad business decisions — which is common in this space,” she said. “They just look like a failing company.”
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