Pax Labs, the popular vape maker, today confirmed the closing of a $ 420 million equity round, including existing investors Tiger Global Management and Tao Capital Partners, and new investors, including Prescott General Partners.
A Pax Labs spokesperson confirmed to TechCrunch that the post-money valuation for Pax Labs is $ 1.7 billion.
The Information first reported on the round, but we have confirmed the specifics, including the funding amount and the valuation.
Pax Labs was launched in 2007 in the hopes of creating a cannabis vaporizer. Since then, the company has created vaporizers for nearly every corner of space, including the PAX Era for concentrates and the PAX 3 for flor.
Here’s what CEO Bharat Vasan said in a prepared statement:
PAX is investing heavily in growing its brand, as well as developing innovative new products to scale and capture a huge opportunity. This round of financing allows us to invest in new products and new markets, including international growth in markets such as Canada and to explore opportunities in hemp-based CBD extracts. We aspire to be the gold standard for safety and good stewards of a product that improves the lives of many people. We are hiring and investing heavily in our people, who drive PAX’s mission to establish cannabis as a force for good.
It’s worth noting that Juul, the popular e-cigarette brand, and Pax Labs lived under the same corporate umbrella before Pax Labs exited Juul in 2017.
Going forward, Pax plans to give users a clearer view of how to take the guesswork out of cannabis. As cannabis is legalized in more areas, the demographic search products in the space continue to grow. Pax wants to help, and believes it can do so through a combination of hardware and software, though Vasan was unwilling to go into detail about the company’s products and features.
“People know about different types of alcohol,” Vasan said. “They may know they are a beer person or a wine person. But none of that exists inside cannabis. They see names like ‘Lemon Haze’ and ‘Cherry Fizz’ and they don’t know what that is. These are names really awesome for a band, but not great for letting you know what you’re consuming. We want to provide more clarity on what that means. “
Like I said, Vasan didn’t like offering more, but this seems more like data replay than software / hardware combination, which leads me to believe that we may see an acquisition in the future from Pax Labs. (To be clear, this fictitious acquisition is strictly based on my guess and is not based on any evidence at all).
“Our biggest challenge is safe access for consumers,” Vasan said. “Regulation is a good thing in this space. It makes the standards higher and the products more transparent. “