Dan Bilzerian's IGNITE International Brands, Ltd (CSE:BILZ) (OTCQX:BILZF) announced Wednesday it's discontinuing its cannabis business in Canada.

Co-founded by the so-called "King of Instagram," Ignite produces CBD oil tinctures, topicals, pet products, vape devices, in addition to spirits featuring premium vodka and tequila and apparel, to name a few.

"As we expand our portfolio of products around the world, our sales are booming except for cannabis in Canada," Bilzerian said, revealing the reason for pulling out of Canada's weed market.

Bilzerian said there are "too many barriers to build a successful cannabis business" in Canada where adult-use cannabis has been legal since mid-2018.

"Currently, very few Licensed Producers in the cannabis industry are making money, and the government's excessive restrictions of the marketing, sales, and distribution of products has diminished the business opportunity while simultaneously making the consumer experience less than optimal," Bilzerian continued. "Whenever the government decides to remove and/or reduce the restrictions in marketing, sales and distribution and allow the business community to properly serve the consumers, IGNITE will consider returning to the market."

In June 2020, CannMart Inc., a wholly-owned subsidiary of Lifeist Wellness Inc.(OTC:NXTTF), formerly known as Namaste Technologies Inc. became the exclusive distributor of Ignite products in the Canadian cannabis market. That deal was terminated several months later.

Ignite's Strategic Moves In 2020

In 2020 the company made several strategic moves, including the launch of a new product division dubbed Ignite Beverages, expanding its portfolio of apparel, CBD, and THC products.

In February 2020, at an "Angels & Devils" celebration, the company's co-founder – Dan Bilzerian – introduced Ignite Vodka.

The company had also teamed up with the Circle K convenience store, which resulted in the launching of 10 CBD products in more than 400 Circle K locations in North Carolina, South Carolina, and Virginia a month later.

Prior to this, Ignite made public that its partnership with Bō Vaping, an e-cigarette provider, yielded more CBD products to hit shelves, including a rechargeable vape pen system as well as Blood Orange and Tropical Fruit CBD pods.

Price Action

Ignite's shares traded 6.57% higher at 1.2000 per share at the time of writing Wednesday morning.

Photo: Courtesy of DDP on Unsplash