Instagram star and international playboy Dan Bilzerian launched his CBD company 'Ignite' in 2017. So how much is Ignite worth now?
If you don't know who Dan Bilzerian is, you clearly don't have Instagram. Bilzerian rose to notoriety after sharing glimpses of his lavish lifestyle to his nearly 30 million Instagram followers, which typically contain semi-naked women, expensive scenery, and Bilzerian with his shirt off.
Though despite Bilzerian's ubiquity on social media, nobody could really blame you if you knew very little about him outside of these provocative pictures, as Dan Bilzerian doesn't talk much about his personal life on social media. From the outside, Bilzerian seems like he's living a life of decadence and carelessness, doing whatever he wants, whenever he wants – and to a degree, this is likely true. However, in recent years the mischevious millionaire's posts have begun to include another subject matter: Cannabis.
Bilzerian's interest in cannabis isn't limited to smoking, (though he seems to enjoy that from time to time) but is instead centered around his cannabis company Ignite. Now, some are changing his unofficial title from the "King of Instagram" to the "King of Weed."
Let's learn about Dan Bilzerian, his company Ignite, and how much Ignite is worth.
Who is Dan Bilzerian?
After being discharged from the Navy SEALS following a four-year service for breaching a safety violation in the gun range, Dan Bilzerian went to the University of Florida to study business and criminology which was funded by a $6,000 per month military veteran's disability allowance. While studying, Bilzerian learned to play poker and went on to play professionally at the age of 29. It turns out choosing poker was a wise move for Bilzerian, who became a world-renowned poker player within just a few years, reportedly earning over $10 million in a single private event and over $50 million in one year.
The success Bilzerian achieved in poker was immense, though it was promptly overshadowed by his glamorous lifestyle as depicted via social media. Almost every post made by the modern-day Hugh Hefner involved women in bikinis, guns and/or boats. And, in the rare moments that he wasn't posing in a jacuzzi with ten women, Bilzerian was also appearing in films such as "Olympus Has Fallen", "Lone Survivor", "The Other Woman", and "The Equalizer."
Bilzerian's ubiquity on social media made him both loved and hated by millions. Some want to be him, others see his exhibitionist displays of women as the embodiment of misogyny and sexism. Though on the topic of his haters, Bilzerian has stated: "People are going to love you, people are going to hate you. When you're in the public eye, it's just something that comes with the territory."
Now, it's reported that Dan Bilzerian's net worth hovers around $200 million, with Ignite Cannabis serving as his new passion project.
What Is Ignite Cannabis?
Dan Bilzerian started Ignite in 2018, though his introduction to cannabis was much earlier. In an interview with Midas Letter, Bilzerian explains that his first experience with cannabis was at "11 years old, using a tin can. That was the first time I got high." Clearly, smoking cannabis was an experience that had an effect on the social media star, as Bilzerian, in another interview, stated his motivations behind starting Ignite: "I've been smoking weed for over 27 years, why not enter the cannabis world?"
Ignite was launched in true Bilzerian fashion, with a massive launch party in his $100 million-dollar Bel-Air mansion that hosted thousands of guests. The party served as a backdrop for Bilzerian to exhibit some of the company's expansive product range including cannabis strains, vaporizer cartridges, concentrates, and CBD oils.
"The goal is to get people to quit smoking, and to use CBD."Dan Bilzerian, founder of Ignite Cannabis
Ignite sells both CBD products and THC products, though the company's THC products are only sold from dispensaries throughout California. Ignite's CBD products, however, are sold internationally due to fewer regulations. The CBD product range varies from CBD oils, edibles, balms, vapes, and CBD pods.
The company uses marketing tactics that are indistinguishable from Bilzerian's own personal account; almost invariably involving women in bikini's – only this time, with cannabis in the shot too. This has drawn the attention of both fans and critics alike, with critics suggesting that Bilzerian is bringing sexism to the cannabis industry.
How Much is Ignite Cannabis Worth?
Putting aside Bilzerian's controversy, the bigger question on everyone's mind is, how much is Dan Bilzerian's cannabis company Ignite worth?
In May 2019, following a reverse takeover of ALQ Gold, Ignite raised $25.8 million selling shares at C$1.50. That same month, the company secured a distribution deal with Taylor Mammon & Nathan Limited, a privately held, established specialist white-label manufacturer in the UK. Under the deal, Taylor Mammon will manufacture, package and distribute a wide array of premium Ignite branded CBD products to select wholesale and retail channels.
Just a month later, in June 2019, the company received listing on the Canadian Securities Exchange (CSE) under the ticker BILZ. This opened the doors to Canada, where cannabis is federally legal and widely available, which laid the groundwork for Ignite to enter into an exclusive licensing agreement with CX Industries, which specializes in extraction, tolling, licensing and innovative third-party product formulations. As stipulated in the agreement, CX will serve as the extractor, packager, and distributor of Ignite-branded vape products and cartridges throughout Canada.
"Ignite represents cannabis and CBD at its finest and CX Industries are the perfect Canadian partners who share the same drive for quality," Jim McCormick, President of Ignite, said in the company press release.
When it comes to the net worth of the company, we first need to look at the financials. According to the company's most recent financial results, Ignite sold about C$2.1 million (US$1.5 million) in products in Q2 and C$3.6 million for the first six months of 2019. The majority of these profits were derived from selling Ignite branded CBD products throughout the United States.
Though these numbers may be impressive for Bilzerian's first entrance into the cannabis space, they are admittedly minuscule when compared to the likes of CV Sciences and Charlotte's Web, who vastly outsell Ignite. The numbers get even less impressive when you factor in that Ignite is currently operating at a net loss of C$21.9 million (US$16.6 million) for the first six months of 2019.
Ignite has a market cap of $144M, a figure again dwarfed by fellow competitor Charlotte's Web, which has a market cap of over $1.12 Billion.
Though it should be said that the cannabis industry is definitely volatile and struggling at the moment, worsened by the FDA's ambiguity toward CBD, and the ongoing vaping crisis. It remains unclear when the dust will settle and the cannabis industry will pick itself back up again, and whether Ignite cannabis will rise to the top or sink to the bottom.
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