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Confirmed: Pax Labs raises $420 million at a valuation of $1.7 billion

Pax Labs, the famous vape maker, has today confirmed the close of a $420 million equity circular, including from existing investors feline intercontinental Management and Tao Capital Partners, and brand-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 circular, but we’ve confirmed the accurate 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 aeon for concentrates and the PAX 3 for bloom.

Here’s what CEO Bharat Vasan said in a readied
statement:

PAX is investing heavily in growing its brand as well as developing innovative brand-new products to scale and catch a gigantic opportunity. This financing circular allows us to invest in brand-new products and brand-new markets, including intercontinental growth in markets like Canada and exploring opportunities in hemp-based CBD extracts. We aspire to be the gold grade for safety and good stewards of a product that enhances many people’s lives. We are hiring and investing heavily in our people, who energy PAX’s adventure of establishing cannabis as a force for good.

It’s worth noting that Juul, the famous 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 assist, and believes it can do so through a combination of hardware and program, though Vasan wasn’t willing to go into details on the company’s forthcoming products and features.

“People know about dissimilar kinds of liquor,” 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 magnificent names for a band but not fantastic 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 benefaction more, but this sounds like more of a data play than a combo program/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 compete is safe consumer access,” said Vasan. “Regulation is a good thing in this space. It makes standards higher and products more transparent.”

Source
TechCrunch
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