Ignite’s (CNSX: BILZ) CEO Dan Bilzerian is being sued by the company’s former VP, Curtis Heffernan.
Mr. Heffernan claims he was let go from the company after being falsely accused of doing drugs while at work in retaliation for blowing the whistle on Dan’s misallocation of company funds for the purchase of several luxury items such as an expensive bed frame ($50K), a high end ping pong table ($15K), and a vault ($88K).
According to Mr. Heffernan, under the balance sheet line item of “other expenses”, Dan has also charged personal expenses related to multiple yacht rentals, pool renovations, and expensive transportation for his entourage, totaling in excess of $200k.
Although on its site, the company boast that it is the industry expert in Cannabis and CBD, their financials suggest that this claim is yet to be proven. On its latest filings for the year ended on December 31, 2019, the company has burned roughly $50 million under operational activities which consists of a significant good-will impairment charge of $18 million.
Net revenue generated for the year was $10 million, while net losses incurred totaled $69 million primarily due to “other expenses” worth $26 million, of which we believe comprises of the personal expenses Dan is accused of making.
Since going public the company’s share price has fallen -74%. Dan is yet to respond to these allegations, and we suggest investors stay away from this company in the meantime.
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