Tobacco-product company AIR Global is investing $20 million USD ($28 million CAD) into Toronto vape tech company Greentank Technologies.
The news: AIR Global announced the strategic investment on Wednesday. Under the agreement, AIR Global will invest the $20 million through the purchase of preferred Greentank shares. Additionally, the agreement provides AIR Global with the option to increase its ownership stake by another 20 percent in the next two years, and earns it the right to nominate a director to Greentank’s board.
From the source: Founded in 2016, Greentank designs and manufactures vapourization hardware and heating technology for both cannabis and nicotine vaping devices. Its flagship product, the Quantum Chip, is a proprietary heating technology that replaces the ceramic coils common in traditional vapes.
Following the thread: AIR Global’s investment comes after years of steady growth for Greentank that includes a $14 million CAD Series A raised in 2019 and a more than $22 million CAD Series B in 2023. Funds from the Series B largely fueled development of the company’s Quantum Chip tech, which Greentank claims produces cooler vapour and smaller aerosol particulate. Including today’s investment, which was made based on a pre-money valuation of roughly $170 million USD ($238 million CAD), Greentank has raised $56 million USD ($78 million CAD).
The company has previously been involved with AIR Global, partnering in 2023 to develop a vape-adjacent device called Vant. Last year, Chris Gemmell, formerly of British American Tabacco, joined the company as chief product and innovation officer.
Final thought: AIR Global’s investment in Greentank comes at a moment when the company is preparing a Pre-Market Tobacco Application (PMTA) for the US Food and Drug Administration (FDA). PMTA’s are mandatory review processes companies need to market tobacco or nicotine products. In order to complete its PMTA, AIR Global must prove, among other things, that it has a consistent and secure supply chain. Under the terms of its deal with Greentank, AIR Global will receive long-term supply assurances, helping it to meet those requirements.
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Feature image courtesy Greentank.