The Security and Exchange Commission (SEC) is investigating Ignite International Brands, a Canadian-based cannabis company run by social media influencer Dan Bilzerian, The Globe and Mail reports. It is said that they are doing so. The company is also under regulatory investigation in Canada.
The company, which previously traded on the Canadian Securities Exchange (“BILZ-CN”), went private on Monday. At its peak in 2019, the company had a market capitalization of more than $750 million, but by the time it ceased trading in Canada and the United States, it was worth about $170 million, according to the report.
The company pulled out of Canada in October 2021, citing “excessive government restrictions,” according to the report.
The SEC filed a motion Monday in California state court to force Ignite to comply with a subpoena it sent in May. In a court filing, the SEC said Ignite faces multiple investigations in the United States, and also said Ignite faces “numerous regulatory requests” in Canada.
Patricia Pay, an attorney for SEC officials, said in a court filing reviewed by the Globe and Mail that the agency is seeking information regarding Ignite's “possible violations of the anti-fraud provisions of federal securities laws.” It said that SEC officials had “revealed information suggesting possible wrongdoing.” We have published financial statements that contain false or misleading statements regarding our 2020 earnings. ”
“The SEC seeks a court order directing Ignite to show cause why the court should not compel the production of documents requested in the subpoena. , is seeking a court order directing Ignite to fully comply with the subpoena.The SEC continues its investigation and has not concluded to date that any person or entity violated federal securities laws. ” — SEC in an Aug. 30 statement.
Ignite was first subpoenaed by U.S. authorities in May, but the company requested a stay of the action, which the SEC refused. The agency granted the company “multiple accommodations,” but said Ignite “failed to provide the complete set of requested documents.”
The case is listed as Securities and Exchange Commission v. Ignite International Brands, Inc., No. 2:22-mc-00172.
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TG Branfalt
TG joined Ganjapreneur in 2014 as a news writer and began hosting the Ganjapreneur podcast in 2016. He is based in upstate New York and also teaches media studies at a local university.
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