CSE:BILZ (Ignite International) Analysis

The valuation here is extremely high. How people are filling these sell orders are beyond me.. I am not going near this until the valuation makes sense for a MARKETING company. Do not get sucked in thinking this is in the MJ space. Solely a sales and marketing company with a focus on cannabis.

“Financial statements of RTO acquirer filed on SEDAR today. So much shade going on behind the scenes with the “Ignite” residences including a purchase option as follows: “The purchase option is a three-year option on the Chalon Estate in California. The Company expects to exercise or extend the option before it expires. If option is exercised by May 31, 2019, the purchase price is $60,000,000”. There are two residences listed within their PPE; one of which is owned by Meadowhawk (another Bilz company) for which Ignite is liable for $35K/month rent? With payroll ran through Blitz NV, travel ran through Goat Airways, rent ran through Meadowhawk, and covering the following expenses “Health, diet, wellness and fitness are areas of Mr. Bilzerian’s lifestyle that are an important part of Ignite’s business strategy” overall Ignite seems to just be the personal spending company of Dan. Clearly some huge potential with the Market and if Ignite’s marketing efforts can ~~penetrate~~ this potential, but to me I think the bottom is still a ways away with those statements released today.”

Update: Wait there’s more! Today’s thoughts:

It’s hard to even call Ignite as being in the MJ space.. Its a sales and marketing company with a focus on the MJ space and funding Dan’s daily spending. The entire business model is to take an “asset light approach” (quoted from corporate documents) to the cannabis market and focus on growing the Ignite brand. What this means is they will be licensing out the brand to actual growers and distributors for a cut of revenue (from current licensing contracts this is 10% of gross revenue.. which is incredibly steep btw). You need to ask yourself what is the value of Dan’s social media presence with the liabilities of supporting his lifestyle? The only thing currently propping the stock is an implied 50M private placement “agreed in good faith” to be underway, I have not found any news on updates to this. But even once this comes in the ENTIRE amount is budgeted towards growing the brand and not cash producing assets. This company is a buy at some point, but it sure isn’t at the 100M market cap of this morning.”

Another Edit: Wondering who is selling off? Some might be the private placement holders @1.50 getting worried (doubt it), but don’t forget this was a RTO Bingo.. lots of people looking in their portfolios wondering how they ended up holding Dan’s piggy bank.

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