VAUGHAN, Ontario–(BUSINESS WIRE)–IGNITE International Brands, Ltd. (CSE:BILZ, OTCQX: BILZF) (“IGNITE” or the “Company”), a global consumer packaged goods brand, today announced the filing of its audited financial statements, MD&A, and accompanying certificates for its fiscal 2020 filings (collectively, the “2020 Filings”). The 2020 Filings have been filed on the System for Electronic Document Analysis and Retrieval and may be viewed by shareholders and interested parties under the Company’s profile at www.sedar.com.
“With the publishing of these results, we close off a difficult transition year in which the company emerged far better positioned to achieve significant profitability and growth in 2021,” said Dan Bilzerian, CEO at IGNITE, adding, “The new management team had to overcome the difficulties of operating during a pandemic and a crippled worldwide supply chain. This made the introduction of new products and maintaining an adequate supply of existing products an unprecedented challenge. But I am pleased with the execution of our new management team and our new important partnerships which should help enable IGNITE to substantially increase sales by satisfying the increasing global consumer demand for our products.”
“2020 was a transition year. In 2021, Ignite will rapidly expand into other countries and regions around the globe. Our new products are being received positively in the market leading to increased sales. At the same time we have significantly reduced our costs. I am pleased to say that Ignite is finally poised to realize its extraordinary potential,” said John Schaefer, President and COO at IGNITE.
Fiscal 2020 Highlights
- Revenue of $16.9MM for FY2020 increased by $7.3MM from $9.6MM in for FY2019. The increase is a result of the Company achieving its strongest quarter in its history reaching sales of $10.1M in Q4 2020.
- Gross profit as a percentage of revenue was 38% for FY2020 which is an increase of 16 percentage points from 22% in FY2019.
- Net and comprehensive loss for FY2020 was $19.7MM, an improvement of $49.3MM from the net and comprehensive loss of $69MM in FY2019. Q4 2020 had net and comprehensive income of $3.1MM compared to a net and comprehensive loss of $33.6MM in Q4 2019. Cost reductions, improved revenues and associated margins, and divesting of investments all contributed to the significant year over year improvement.
- Working capital was $13.5MM at December 31, 2020, up $2.8MM compared to $10.7MM at December 31, 2019.
Significant Events in the Fourth Quarter 2020
- On October 27, 2020, the Company’s CEO, Dan Bilzerian, acquired 250,000 Proportionate Voting Shares. The acquisition took the form of a purchase of CA$5 million worth of IGNITE Proportionate Voting Shares, and a shares-for-debt transaction whereby CA$20 million worth of convertible debentures of the Company were exchanged for 200,000 Proportionate Voting Shares.
IGNITE is a global consumer premium brand, operating in several market segments. Founded by Dan Bilzerian, the Company’s “quality-first” approach is fundamental to the brand and its products. IGNITE product categories include CBD products, nicotine and synthetic nicotine vape products, premium performance drinks named ZRO, spirits featuring a premium vodka, and apparel. The IGNITE THC product line was introduced in Canada in 2020.
Shares of IGNITE are listed on the Canadian Securities Exchange (CSE) under the symbol “BILZ” and quoted in the United States on the OTCQX under the symbol “BILZF”.
Further information on IGNITE can be found on the Company’s website at www.ignite.co.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release includes certain “forward‐looking statements” under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon several estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; the effects and impacts of the coronavirus disease (COVID-19) pandemic, the extent and duration of which are uncertain at this time on IGNITE’s business and general economic and business conditions and markets; the ability of IGNITE to give effect to its business plan. There can be no assurance that any of the forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether because of new information, future events or otherwise, except as required by law.