{"id":26650,"date":"2020-11-19T23:20:58","date_gmt":"2020-11-19T23:20:58","guid":{"rendered":"http:\/\/dailycbd.com\/en\/?p=26650"},"modified":"2020-11-28T18:40:36","modified_gmt":"2020-11-28T18:40:36","slug":"is-ignite-cbd-broke","status":"publish","type":"post","link":"https:\/\/dailycbd.com\/en\/is-ignite-cbd-broke\/","title":{"rendered":"Is Ignite CBD Broke?"},"content":{"rendered":"\n

Dan Bilzerian, the trust-fund kid turned playboy, has been dubbed the “king of Instagram<\/a>.” He spends his time sharing glimpses of his lavish lifestyle hanging out on yachts with a harem of models.<\/p>\n\n\n\n

In 2017 Dan formed a CBD brand called Ignite CBD<\/a>. The idea was that he would use his fame and social media reach (currently sitting at 32.5 million followers) to create a global CBD brand.<\/p>\n\n\n\n

But things don\u2019t appear to be going according to plan \u2014 and there\u2019s a lot of speculation around the future of Ignite International Brands LLC.<\/p>\n\n\n\n

After filing the second-quarter financial reports nearly two and a half months late (which were found buried into a subpage on the Ignite website), the results paint a grim outlook for the company.<\/p>\n\n\n\n

Youtuber Tom Nash<\/a> managed to dig up the reports and has been breaking them down over a series of videos.<\/p>\n\n\n\n

The reports suggest the company is on a steady losing streak. Ignite burned through $11 million in 6 months \u2014 which works out to nearly $1.8 million per month. In Q2 of 2020 alone, the company had a net loss of $7.4 million. In total, they’re in the hole well over $70 million.<\/p>\n\n\n\n

With reports the company was set to go broke in a matter of weeks, Dan Bilzerian was forced to inject $25 million (Canadian) of his own capital into the company to keep it alive.<\/p>\n\n\n\n

This was a large sum of money, but it didn’t go very far. Most of this cash went to paying off a lender, only $4 million was left over to keep the company going. <\/p>\n\n\n\n

While the $25 million was commendable, it’s not going to keep the company afloat for long unless there are some fundamental changes in the company’s operations.<\/p>\n\n\n\n

So what went wrong?<\/p>\n\n\n\n

How could a company once valued at over $140 million in 2019 be so close to collapse?<\/p>\n\n\n\n

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Ignite is hemorrhaging money. The monthly burn rate is out of control \u2014 largely because Dan Bilzerian has been using it as his personal spending account for nearly two years. Ignite investors have been funding his insanely lavish lifestyle \u2014 buying trips, paying for models, and even covering the rental cost of the Bel <\/a>A<\/a>ir mansion<\/a> he’s been living out of.<\/p>\n\n\n\n

One of the now-defunct presidents of Ignite, Curtis Heffernen<\/a>, recently started exposing some of the company’s obnoxious spending habits.<\/p>\n\n\n\n

As head of the company, Heffernen was faced with a difficult decision. Many of the expenses written off as “operational” or “marketing” expenses could be deemed unethical at best \u2014 fraudulent at worst.<\/p>\n\n\n\n

After Dan tried to include an $18,000 liquor tab from a Valentine’s day party under the company’s expenses, Heffernen wasn’t having it anymore. He pushed back and was promptly fired.<\/p>\n\n\n\n

Heffernan has been out of work ever since \u2014 his career likely forever tainted by his participation in the failing CBD company. He’s now suing Ignite brands and scheduled for a jury trial in December 2021<\/a>.<\/p>\n\n\n\n

After being let go from the company, Hefferenen started exposing some of the insane expenditures slipped under the company expense account.<\/p>\n\n\n\n

Here are some of the large ticket items Dan\u2019s been buying with Ignite money:<\/strong><\/p>\n\n\n\n