Ignite International Brands (CSE: BILZ) last night announced that it will be leaving behind its cannabis operations in Canada. The licensed producer announced that it will be exiting the cannabis space within the country, blaming the Canadian government for its decision.
In announcing the departure, the company highlighted a number of issues surrounding the Canadian marketplace, including “the governmentās excessive restrictions of the marketing, sales and distribution of products,” which are said to have “diminished the business opportunity while simultaneously making the consumer experience less than optimal.”
Evidently, in Ignite’s words, the consumer experience is solely focused around marketing rather than the quality of the product being marketed. Cannabis Twitter was quick to react to the news, with several comments being made about the firm, its marketing focal point, and the overall quality of its product.
For fans of Dan Bilzerian however, fear not, because Ignite has not entirely left the Canadian market. The firm indicated that as a result of their departure from cannabis and its restrictive marketing regulations, the company will now be entering several verticals within Canada.
“By discontinuing our cannabis operations in Canada, IGNITE will be in a much better position to introduce and promote its vodka, tequila, seltzers, energy drinks, vapes, and apparel products to the Canadian market. Due to our involvement in cannabis, IGNITE was forced to block Canadians from accessing the ignite.co website. Now we can launch our ignite.co website and reach out to our Canadian customer base, allowing them to enjoy our unique portfolio of quality products,” said Bilzerian, CEO of Ignite Brands.
The company also relayed that it anticipates its fourther quarter sales “will significantly exceed third quarterās sales and be another record-breaking quarter.” Ignite last quarter reported $12.0 million in sales for the period ended June 30, 2021, of which $10.7 million was attributable to wholesale sales. Canada overall represented just 7% of sales for the period, or $0.9 million.
Ignite International Brands last traded at $1.34 on the CSE.
Information for this briefing was found via Sedar 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.
