Pax Labs has picked up $420 million in equity financing
California-based Pax Labs recently completed a funding round to help the company expand its cannabis vaporizer offerings. Ironically enough, the company secured $420 million in equity funding – 420 is the international sign for marijuana. The amount is a record for any marijuana-based business.
Pax Labs offers the Pax Era for concentrates and the Pax 3 for flower. The company also offers a mobile app that allows consumers to control the temperature and strength of their vaporizers, allowing for greater predictability in each use.
According to Pax Labs CEO Bharat Vasan, “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.”
Previously, the highest funding amount received by a cannabis company was $250 million. That was debt financing that was received by MedMen this past March. Pax Labs had hoped to receive $150 million, but was able to find a lot more attention from companies such as GreenWave Advisors, Tiger Global Management and Tao Capital Partners.
GreenWave’s founder and managing partner, Matt Karnes, asserts, “It is a further signal that the floodgates are starting to open given that institutional investors have invested.”