Toronto-based vape manufacturer Green Tank Technologies has raised a $14 million CAD Series A financing round. The company secured the funding from existing investors including Green Acre Capital, alongside new investors including Newstrike Brands, a Canadian licensed producer whose strategic partners include The Tragically Hip.
“This financing will enable Green Tank to capitalize on new opportunities on a global scale.”
“This financing will enable Green Tank to capitalize on new opportunities on a global scale,” said Corey Koffler, Green Tank’s COO. “It will allow us to achieve our innovation goal of producing the highest performing vape technology on the market and to become the premiere B2B solution for our brand partners around the world.”
The company, which launched in 2016 by brothers Dustin and Corey Koffler, experienced annual revenue growth of nearly 300 percent last year. It is now working alongside more than 130 brands, and has signed partnerships with over a dozen licensed producers in Canada.
Green Tank said the capital will be used to help the company scale operations, accelerate product innovation, and attract top talent. The funding comes at a pivotal time for the company after the legalization of recreational cannabis came into effect last October, permitting the legal sale of cannabis vapes across Canada.
According to BDS Analytics, vaping is quickly becoming the top cannabis consumption method for recreational and medical use in the United States. In California, vaporizers account for approximately 30 percent of all legal cannabis transactions.
“Our strategic investment in Green Tank underscores our vision of building a premier consumer brand for the adult recreational market, with significant emphasis on the vape category,” said Mark E. Burton, chief strategy officer of Newstrike Brands. “We expect vape products to be a significant part of our overall revenue profile and we are excited to be working closely with Green Tank to design and deliver highly innovative vaporization hardware specifically designed to work seamlessly with our unique cannabis extracts.”
Last year, Green Tank raised a $4.3 million seed round from Toronto-based Green Acre Capital and Snoop Dogg’s venture capital firm Casa Verde.
According to Green Tank, consumer demand, led by vaporizers, is driving cannabis concentrates toward a projected $8 billion USD in retail sales over the next three years, outpacing growth in traditional cannabis flower sales. Vape sales are expected to hit $6.5 billion within the same timeframe.
Image courtesy Green Tank Technologies.