It seems that recent twitter comments from the #potstocks community on Twitter might be getting to Dan Bilzerian, if only slightly. Ignite International (CSE: BILZ) this morning issued a news release headlined as “Chairman of the Board Intends To Acquire $25 Million of IGNITE Shares.” While it might sound exciting at first, essentially Bilzerian will be purchasing certain outstanding debt and settling it with equity, while also subscribing to a $5.0 million private placement.
The first transaction will see Bilzerian acquire 50,000 proportionate voting shares of the company at a price equal to $0.50 per subordinate voting share. The transaction will see an aggregate subscription value of $5.0 million, with shares effectively being purchased at a 39% premium to market.
Secondly, Bilzerian is to enter arrangements with a creditor of the firm, from whom he will purchase C$20 million of currently outstanding convertible debentures from, which will then be settled with the company via equity issuances. In total, 200,000 proportionate voting shares are to be issued to Bilzerian in exchange for the debt settlement.
Proportionate voting shares issued to Bilzerian are exchangeable for subordinate voting shares on the basis of 1 for 200. The shares for debt transaction will also see the company use a price per share equivalent to $0.50 per subordinate share.
The transfer of debt transaction is expected to occur October 26, with the final closing of the shares for debt as well as the financing being subject to approval from the CSE.
Ignite International last traded at $0.36 on the CSE.
Information for this briefing was found via Sedar, Namaste Technologies and Ignite International Brands. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
