PAX Labs and the Weed Vape Industry
Pax Labs, formerly known as Ploom is a private American electronic vaporizer company which specializes in Pax vaporizers. Pax Labs was founded by James Monsees and Adam Bowen in June 2007 under the name “Ploom” in San Francisco, California, United States of America.
The San-Francisco based vape company is on a mission to bring the cannabis industry to a different level. The company believes that cannabis can be used responsibly, and also that, cannabis is delivered with health consciousness, reliability, and care.
As of today, PAX offers a collection of top quality cannabis vaporizers that can be controlled on both the iPhone and Android platforms making it very user-friendly for consumers.
When PAX Labs was founded in the year 2007, the ultimate goal of the company was to create an accountable, pleasurable and tailored vaporizing experience. As of 2018, PAX products continue to signify the gold standard in product quality.
Pax has also been involved with a company named Japan Tobacco International (JTI). JTI, on the other hand, is the international tobacco division of Japan Tobacco, a leading global tobacco product producer. The company has its headquarter in Geneva, Switzerland, and also sells its brands in more 120 countries, including the United States of America.
In 2015, there were reports that JTI, which happened to be one of Pax’s investors was to end their partnership and push for a division of PAX products. As part of the agreement, JTI took over Ploom’s ModelTwo heat-not-burn vaporizer and the Ploom name while Ploom (now PAX) retained the rights to its Pax heat-not-burn product that uses loose pipe tobacco which subsequently prompted the change of name to PAX. The ModelTwo heats tobacco supplied in pods, currently available in six flavors.
Pax markets its products, starting from the Pax by Ploom, Pax 2, which includes a few added features such as a larger oven, longer battery life, and many other noticeable changes. The Pax 3 was introduced in November 2016. Pax also introduced an extract-based vaporizer known as the Pax Era.
PAX Labs, Inc. produces loose-leaf vaporizers and related accessories for concentrates and dry herbs. PAX Labs serves its customers through a network of distributors and retailers in the United States of America and internationally.
The Players in the Marijuana Vape Industry
- Ascent Industries Corp.: In November 2018, Ascent Industries Corp. announced their brand partnership with PAX Labs, Inc. through a wholly owned subsidiary. The brand partnership includes the pairing of Ascent’s TOKO brand oil with PAX Era premium cannabis vaporizer and distribution of the paired products in the state of Oregon.
In accordance with the Agreement between the two companies, Ascent Industries Corp. is licensed to retail and allow the PAX Era vaporizer platform and compatible pod through all the dispensaries in Oregon which is about 535 dispensaries in total.
- Heavy Hitters: Pax labs has signed an agreement with Heavy Hitters to offer consumers cannabis oil in pod technology. Under the Agreement, the Heavy Hitters PAX pods will be available in Jack Herer, Pineapple Express and Northern Lights starting in November 2018, with a 1:1 THC strain/CBD ratio.
PAX Era pods are constructed to prevent dripping and clogging and feature heat control technology that offers superior flavor and dependable vapor quality. The device has no button; it is pocket-friendly and easily connects to the mobile application for flavor profiles and temperature control.
- Supreme Cannabis: Supreme cannabis announced their partnership with PAX labs to provide people (consumers) with the ultimate vaporizing experience. The two companies came together to enter Canada’s eye-catching vaporizing market with two respected brands in their respective categories.
According to the Agreement, Supreme cannabis’ owned subsidiary, which is about 7ACRES, becomes one of the only four licensed producers initially chosen as partners to create cannabis oil pods for PAX lab’s new device which is the “PAX Era.”
Pax’s partnership with Supreme cannabis will drastically increase the growth of supreme cannabis vaporizable product category.
- Aurora Cannabis, Aphria Inc. and OrganiGram Holdings Inc.: San Francisco-based app-controlled vaporization technologies and device maker, PAX Labs, on Friday, June 7, 2019, announced agreements with these leading cannabis firm to leverage its innovative Era device and platform.
The deal allows these world leading companies to offer their products in pods compatible with the PAX Era device.
Interim CEO of Aphria, Irwin Simon said Aphria’s plan is to introduce the PAX pods for both medical patients and adult’s recreational use.
PAX's Financial Health
Since Pax was founded in the year 2007, the company has partaken in 7 rounds of funding. They have raised a sum of $612.3 Million in total, and generate $19 Million in revenue annually. Pax labs have focused on making world-class cannabis vaporizers such as the PAX 3, which is used for flowers whilethe PAX Era is used for concentrates.
They also saw an opportunity for a mobile application which allows users to regulate the temperature of the device and also draw strength of the vaporizer.
As a result of this, the revenue for 2019, which was projected by PAX is $113 million. They as well predicted that the revenue could jump to $1.2 billion by 2023.
In addition to this, investors (both existing investors and new investors) such as Tao Capital Partners, Prescott General Partners, Redmile Group and Tiger Global Management have invested close to $420 million in this company.