Dan Bilzerian To Acquire $25 Million Share Acquisition To Save His Company.
IGNITE International Brands Ltd. is a multinational consumer packaged goods brand.
It announces that on 26 October 2020, Dan Bilzerian, Chairman of the Board and CEO of the Company, intends to subscribe. He will purchase 50,000 Proportionate Voting Shares (‘Share Subscription’). From the Company based on a price equal to CA$0.50 per Subordinate Voting S S. Based on a fee equal to CA$0.50 per Subordinate Voting S S on 26 October 2020.
Daniel Brandon Bilzerian is a well-known American Internet star, professional poker player, and Instagrammer. He is also a venture capitalist and Ignite’s founder, president, and Chief Executive Officer.
Many speculations have circulated for quite a while that Dan and his company Ignite are on the verge of bankruptcy. With the company’s latest financial results and condition, everybody was wondering about their next step to save the company.
A Series Of Purchasing Agreements
The Company also plans to enter into a series of purchasing agreements on October 26, 2020, with Dan Bilzerian and the Company’s lender. The Company intends, under the agreements, to issue 200,000 proportionate voting shares in the Company’s capital (the ‘Proportionate Voting Shares’). To resolve CA$20 million of convertible debentures (the ‘Debentures’) already issued and outstanding.
The proposed transactions would include the purchase by Mr Bilzerian of the debentures from the Company’s creditor on October 26, 2020. Immediately before the closing of the Debt Transaction Shares. According to which the Company will acquire the debentures from Mr Bilzerian for immediate cancellation in respect of the Company’s issuance of the above-mentioned Proportionate Voting Shares. Proportionate Voting Shares shall be convertible into Subordinate Voting Shares in the capital of the Company (‘Subordinate Voting Shares’) In compliance with their terms and conditions at the rate of one (1) Proportionate Voting Share per two hundred (200) Subordinate Voting Shares.
The Corporation uses a price of CA$0.50 per Subordinate Voting Share for the Stock for Debt Transaction. It is 39 per cent premium to the trading price of the Subordinate Voting Shares on the Canadian Securities Exchange (‘CSE’). The day before this announcement.
Dan Bilzerian Project Profit In The Fourth Quarter
“As we announced last week, we project Ignite to have a profitable fourth quarter and I am very much looking forward to seeing what the Company can do in 2021, when it should be operating on all cylinders”, stated Mr. Bilzerian.
“The new management team is excited to show what it can do in the fourth quarter this year and next year.”
As this term is described in Multilateral Instrument 61-101 – Defense of Minority Securityholders in Special Transactions (‘MI 61-101’). The Debt Transaction Shares and the Share Subscription each constitute a ‘related party transaction. About the Debt Transaction Shares and the Equity Subscription, the Company relies on the exemption from the valuation and minority. Approval provisions provided for in subsections 5.5(a) and 5.7(a) of MI 61-101, respectively. The securities do not represent more than 25 % of the market capitalisation of the Company.
The Debt Transaction Shares and the Equity Subscription Shares were both authorised by the Company’s directors. They are autonomous in the sense of such transactions. A notification on a material change will be sent less than 21 days before the closing date of the transactions referred to in this news release. In the circumstances in which the Company wishes to strengthen its financial condition by reducing its accrued liabilities as soon as possible. The Company assumes this shorter duration is fair and necessary.
Taking a shot at reporters who claimed that he was on the brink of bankruptcy, he posted a meme. Many people disagreed and said he was going to go down fast.
Internally, he replaced his former company president and appointed a new person for his appointment.