San Francisco, California-based electronic vaporizer company, Pax Labs confirmed on April 20th that it raised an apropos $420 million in equity financing. This is a record for a U.S-based marijuana company. This is almost twice what MedMen, (another U.S cannabis company) was able to get in March ($250 million). According to Pax Labs, the fund was from new and existing investors including San Francisco-based Tao Capital Partners, Redmile Group, Prescott General Partners, and New York-based Tiger Global Management.
Commenting on how the fund will impact the company, Bharat Vasan, the CEO of Pax Lab said, “This financing round allows us to invest in new products and new markets, including international growth in markets like Canada and exploring opportunities in hemp-based CBD extracts.”
According to reliable sources, the initial goal of Pax was to raise $150 million. However, the growing interest from investors led to a surge in the final figure. This is one of the instances which shows a growing interest in the cannabis industry from investors around the world. Over the years, Pax has focused in the manufacture of vaporizers including PAX 3 for flower and PAX Era for concentrates. The company is projecting a 2019 revenue of $113 million while estimating that this figure could jump to $1.2 billion by 2023.
Pax was an offshoot of Juul in 2017, although the parent company has been in existence since 2007. Late in 2018, Pax was able to raise $20 million through a funding round. According to Vasan, the company decided to keep the investment on a low ebb at that time to “avoid becoming overly dependent on venture capital”.
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