More CSE:BILZ

For my daily readers out there. I left out some further details to let the original BILZ stock soak in. But in addition to my initial post please absorb the following:

Ignite International Brands Ltd. | C.BILZ
In 2017, financing for $36,900,000 (86,100,000 shares issues) in the form of a subscription agreement was issued by Danny Boi, at a share price of 1 penny. One year later in 2018, the Company has another equity raise from external parties (related? unsure) at a 1$ valuation. Please note the quote from the Mgmt circular below:

“At December 31, 2017, Ignite had outstanding stock subscription receivables with two shareholders in the amount of $5,500,000 and $30,600,000, respectively. The receivable balances incurred interest at 4%. The related accrued interest of $1,283,500 was recorded as additional paid-in capital and was settled upon the stock repurchased discussed below.”

So give it a couple months and what does “the company” decide to do. they buy back shares at inflated prices that lets Chairman (Dan) and one other keep majority (76,100,00) of shares at cost of <0.01 per share. 

“On November 20, 2018, the Company entered into a Share Purchase Agreement with a shareholder. This agreement allowed the Company to repurchase 8,500,000 shares at $3.728 per share. The proceeds were used to retire the subscription receivable in the amount of $30,600,000 and pay in full the accrued interest earned on the subscription receivable in the amount of $1,088,000.

So Dan pays himself out, for shares he never actually put money in the company for AND allows himself to keep the penny shares for a majority of the company. No surprise the “valuation” of the shares at buyback were just the math to make this possible.

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