Pax Labs, the popular vape maker, has today confirmed the close of a $420 million equity round, including from 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 the round, but we’ve confirmed the specific details, including funding amount and valuation.
Pax Labs launched in 2007 with the hopes of creating a cannabis vaporizer. Since then, the company has created vaporizers for just about every corner of the space, including the PAX Era for concentrates and the PAX 3 for flower.
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 an enormous opportunity. 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. We aspire to be the gold standard for safety and good stewards of a product that enhances many people’s lives. We are hiring and investing heavily in our people, who power PAX’s mission of establishing cannabis as a force for good.
It’s worth noting that Juul, the popular e-cigarette brand, and Pax Labs used to live under the same corporate umbrella before Pax Labs spun out of Juul in 2017.
Looking forward, Pax has plans to give users more insight into taking the guesswork out of cannabis. As cannabis becomes legal in more areas, the demographic seeking products in the space continues to grow. Pax wants to help, and believes it can do so through a combination of hardware and software, though Vasan wasn’t willing to go into details on the company’s forthcoming products and features.
“People know about different kinds of alcohol,” said Vasan. “They may know that they’re a beer person or a wine person. But none of that exists within cannabis. They see names like ‘Lemon Haze’ and ‘Cherry Fizz’ and they don’t know what that is. These are all really awesome names for a band but not great to let you know what you’re consuming. We want to provide more clarity around what that means.”
As I said, Vasan was not keen on offering more, but this sounds like more of a data play than a combo software/hardware play, which leads me to believe that we may see an acquisition in Pax Labs’ future. (To be clear, this fictional acquisition is based strictly on my conjecture and not based on any evidence at all.)
“Our biggest challenge is safe consumer access,” said Vasan. “Regulation is a good thing in this space. It makes standards higher and products more transparent.”