IGNITE Files Q2 2021 Financial Statements

IGNITE International Brands, Ltd. (CSE:BILZ, OTCQX: BILZF) (“IGNITE” or the “Company”), a global consumer packaged goods company, today announced the filing of its financial statements and management discussion and analysis (“MD&A”) for Q2 2021, which can be viewed under the Company’s profile at www.sedar.com.

“We have now reported our third straight quarter of year over year sales growth despite the challenges created by the governments reaction to covid-19," says Dan Bilzerian, CEO at IGNITE. "We will continue to broaden our product portfolio and expand into new countries in Central and South America, Europe, the Middle East and Asia, while strengthening our distribution systems in North America.”

Q2 2021 Highlights

• Revenue of $12.0MM was a significant milestone as it is the strongest performing quarter in the Company’s history. Revenue was $8.9MM more than Q2 2020, and $10.0MM more than Q2 2019;
• Gross profit as a percentage of revenue was 33% which was an increase of 6 percentage points (“PPT”) from 27% in Q2 2020;
• Income from operations was $0.2MM, an increase of $7.2MM when compared to a loss of $6.9MM for Q2 2020;
• EBITDA of $0.4MM was a significant improvement from the negative $5.0MM EBITDA in Q2 2020. This was the result of improved sales coupled with significant cost reductions;
• Net loss for Q2 2021 was $0.5MM, an improvement of $7.1MM, compared to a net loss of $7.6MM in Q2 2020; and
• Working Capital for Q2 2021 of $24.2MM was up $10.7MM compared to $13.5MM at December 31, 2020.

The Company is also pleased to announce that Mr. Scott Rohleder will be rejoining IGNITE as interim CFO effective immediately. Mr. Rohleder, an accountant and former auditor, will be replacing Mr. Paul Dowdall, who will be leaving the Company on September 10, 2021. Mr. Rohleder has a long association with Ignite having served as a member of the Board of Directors, Chief Financial Officer and as a Consultant for several years. He also serves as a member of the Board of Directors of a number of private companies. Dan Bilzerian stated, “I have known Mr. Rohleder for more than a decade and have the highest confidence in his ability to serve as the interim Chief Financial Officer for Ignite for an indefinite period of time. Having Scott in that position gives us great flexibility in terms of time to find another CFO.”

About IGNITE

IGNITE is a global consumer premium brand, operating in several market segments. IGNITE product categories include CBD products, nicotine and synthetic nicotine vape products, premium performance drinks named ZRO, apparel, and spirits featuring tequila and a premium vodka. 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.

CAUTION REGARDING NON-IFRS FINANCIAL MEASURES

This press release refers to “EBITDA” which is a non-IFRS financial measure that does not have a standardized meaning prescribed by IFRS. The Company’s presentation of this financial measure may not be comparable to similarly titled measures used by other companies. This financial measure is intended to provide additional information to investors concerning the Company’s estimated results. EBITDA is defined as earnings before interest, tax, depreciation and amortization, and is a measure of a company’s operating performance. Essentially, it’s a way to evaluate a company’s performance without having to factor in financing decisions, accounting decisions or tax environments.

Management uses this non-IFRS measure as a key metric in the evaluation of the Company’s performance and the consolidated financial results. The Company believes Adjusted EBITDA is useful to investors in their assessment of the operating performance and the valuation of the Company. However, non-IFRS financial measures are not prepared in accordance with IFRS, and the information is not necessarily comparable to other companies and should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with IFRS. For a reconciliation of EBITDA to an IFRS measure, please see the Company’s MD&A available under the Company’s profile at www.sedar.com.

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