Social media influencer's cannabis company under SEC investigation

Sep.02.2022
Social media influencer's cannabis company under SEC investigation
Dan Bilzerian-led cannabis company under SEC investigation for possible false reporting of 2020 financial performance.

A cannabis company led by social media influencer Dan Bilzerian is under investigation by the US Securities and Exchange Commission (SEC).


The SEC has issued a lawsuit announcement stating that it has "filed a lawsuit against publicly traded company Ignite International Brands, Ltd. headquartered in Ontario, Canada, ordering it to comply with a subpoena for documents.


The SEC is investigating whether the company headquartered in Markham, Ontario, made false or misleading statements in reporting its 2020 financial performance, potentially violating federal securities law.


According to a press release, the company failed to provide the requested documents despite multiple accommodations offered by SEC staff.


The US Securities and Exchange Commission is continuing its fact-finding investigation and thus far has not reached any conclusions regarding individuals or entities violating federal securities laws.


According to The Growth Op, the company sells a variety of cannabis products. In 2019, the company incurred a loss of $67 million and has been raising funds through debt and the sale of company stocks to stay afloat.


In 2020, the company's stock price was approximately 94 cents per share, down from a high of over $5. Last year, the company announced its exit from the Canadian cannabis market citing too many obstacles hindering the success of the marijuana business.


It has been reported that at the shareholder meeting held on August 24th, 2022, Ignite shareholders approved a privatization resolution that was announced on July 19th, 2022. The privatization transaction has now been completed.


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