Dan Bilzerian’s Pot Company Set To Go “Up In Smoke” After Posting Monster $50M Loss

Dan Bilzerian’s Pot Company Set To Go “Up In Smoke” After Posting Monster $50M Loss

Tyler Durden

Tue, 07/14/2020 – 18:50

The self-titled “King of Instagram”, Dan Bilzerian, now also appears to be the “King of Lighting Cash On Fire”.

That’s because Bilzerian’s new pot company, Ignite International, looks like it’s about to go up in smoke. The company torched $50 million in cash last year after raising $19.9 million in convertible debt and $23.7 million from a short term promissory note. 

If the company winds up surviving, it may have to enter a toxic financing spiral that could decimate the company’s shareholders further than they already have been. 

The company sells all types of weed-related products and has been promoted heavily on Bilzerian’s Instagram account, where he has over 31 million followers and frequently posts photos of himself with models in exotic locations.

Of the $50 million burned last year, $43 million was for expenses related to marketing and promotion, according to the NY Post. Much of that shareholder cash was spent throwing booze fueled parties at various global destinations with barely-dressed women.  

Nearly all of Bilzerian’s photographs on his Instagram portray a playboy-like lifestyle for the CEO. In fact, the company’s annual marketing budget was more than double its annual sales revenue. 

The company’s shareholders appear to be footing the bill for Bilzerian’s personal lifestyle – not only paying for his lavish parties but also paying him a salary in the process. 

Bilzerian was also said to have lost out on a book deal last month because he was “too busy partying” to deliver the manuscript that was required by his publisher, Simon & Schuster. 

His company, meanwhile, sells everything from vodka to THC vape pens to CBD oils. It began trading publicly in Canada in January 2019 and trades under BLIZF on the US OTC markets.

Its stock is down more than 70% over the last year and trades at just $0.66 in the US. Its 52-week high was $4. 

It’s a shame no one ever told Bilzerian that if you run an unprofitable company, some fancy A/R accounting and short dated out of the money call options can work wonders. Maybe he could turn his loss generating machine into the largest company in the world.

But until he learns those “secrets” of being a public company, he’ll have to continue sticking it to his shareholders the old fashioned way: siphoning money out of the company while diluting retail bagholders whose “due diligence” is poring through Bilzerian’s Instagram photos. 


This post has been republished with permission from a publicly-available RSS feed found on Zero Hedge. The views expressed by the original author(s) do not necessarily reflect the opinions or views of The Libertarian Hub, its owners or administrators. Any images included in the original article belong to and are the sole responsibility of the original author/website. The Libertarian Hub makes no claims of ownership of any imported photos/images and shall not be held liable for any unintended copyright infringement. Submit a DCMA takedown request.

-> Click Here to Read the Original Article <-

About The Author

Tyler Durden

Zero Hedge's mission is to widen the scope of financial, economic and political information available to the professional investing public, to skeptically examine and, where necessary, attack the flaccid institution that financial journalism has become, to liberate oppressed knowledge, to provide analysis uninhibited by political constraint and to facilitate information's unending quest for freedom. Visit https://www.zerohedge.com

Leave a reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Welcome

Bringing together a variety of news and information from some of today’s most important libertarian thought leaders. All feeds are checked and refreshed every hour and pages auto-refresh every 15 minutes. External images are deleted after 30 days.

Time since last refresh: 0 second

Publish Your Own Article

Follow The Libertarian Hub


Please consider donating using any of the cryptocurrencies below or use the Brave browser to tip using Basic Attention Tokens (BAT). Your anonymous contributions help keep this website running for everyone to enjoy!

Donate

Take Control of Your Domain Names
The Ultimate Managed Hosting Platform

Weekly Newsletter

Newsletter Signup

Subscribe to our newsletter to receive a weekly email report of the top five most popular articles on the Libertarian Hub!

Weekly Newsletter SignupTop 5 Stories of the Week

Subscribe to our newsletter to receive a weekly email report of the top five most popular articles on the Libertarian Hub!