Toronto-based Greentank Technologies has closed a $22.2 million CAD ($16.5 million USD) Series B funding round to continue developing its cannabis vaporizer hardware.
The funding is inclusive of a $14.5 million USD equity investment led by Organigram Holdings, a licensed producer of cannabis, and an unnamed strategic investor group with “over 15 years manufacturing experience”. An additional $2 million USD of debt financing was provided by existing shareholders.
Greentank designs and markets vapes, which work by heating a cannabis concentrate in order to vaporize it for inhalation. The pen’s accessories consist of a battery, mouthpiece, heating element, and a chamber or cartridge.
Greentank sells their designs to existing vaporizer companies, and have previously worked with “hundreds” of vape brands across the United States and Canada. It has won a Red Dot Design award and holds a research license from Health Canada that enables rapid on-site testing and prototyping.
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Greentank was founded in 2015 by brothers Dustin and Corey Koffler, and has raised $38.5 million in financing since then. Past investors include Green Acre Capital, Newstrike and Snoop Dogg.
Corey Koffler said that the funding will be used to “create a new generation” of heating elements for the vapes. Greentank’s pens eliminate the use of traditional ceramic and wicked coil systems commonly used in most vaporizer products today and use 99.99 percent biocompatible materials.
These devices first became available in Canada’s legal market early in 2020, and recent data suggests that in the last two years pens and extracts have taken a larger market share and eaten into flower sales.
The data also shows that while smoking flower was still the most common form of consumption among Canadians at 70 percent of consumers, this showed a decrease from 74 percent in 2021.