Canadian manufacturer of vaporization hardware Green Tank Technologies has completed its Series A round of financing during which it managed to secure C$14 million ($10.44 million) in funding.
What Happened
The funding was provided by existing investors, including Green Acre Capital, as well as new investors, one of which is licensed cannabis producer Newstrike Brands Ltd NWKRF.
A year ago, Green Tank conducted a $4.3-million seed round that was led by Green Acre Capital and Casa Verde, Snoop Dogg's venture capital firm. The company was the second in which Casa Verde invested.
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Green Tank secured the investment at a pivotal time. In 2018, the company's revenue surged by 300 percent and it's now working with over 130 brands in the U.S. and other countries. It also has partnerships with more than a dozen licensed producers in Canada. Moreover, Green Tank recently announced the launch of a new certified child-resistant vaporizer cartridge for the cannabis industry.
In this way, Green Tank will be able to take advantage of the funding to help it scale operations, accelerate product innovation, and attract talent.
Why This Is Important
Vaping is gaining more popularity among cannabis consumers, with BDS Analytics estimating that in California it currently accounts for 30 percent of all legal cannabis sales. By 2022, vape sales in the U.S. are expected to reach $6.5 billion.
The latest financing round will help Green Tank take advantage of consumer trends and establish itself among the market leaders in this segment.
What's Next
In 2019, Green Tank will focus on growth in the legal U.S. markets, as well as the launch of vaporizers in Canada expected in October, the company's Chief Operating Officer Corey Koffler told Benzinga.
"Given our strategic partnerships with several of the leading licensed producers in Canada, we have an opportunity to establish Green Tank as the dominant player in the cannabis vape space right across the country. As part of this strategy, we plan to launch new and disruptive vape hardware over the coming years," said Koffler.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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