Cannabis Vape Company Greentank Closes CAD $14 Million Series A Financing

News

Posted by Derek Champoux
4 months ago | March 28, 2019

March 28, 2019 – TORONTO, CANADA – Greentank, (“Greentank” or the “Company”)
a leading manufacturer of innovative, high-performance vaporization hardware is pleased to announce the
completion of its Series A round of financing. The company, launched in 2016 by brothers Dustin and
Corey Koffler, secured the CAD $14 million in funding with continued support from existing investors,
including Green Acre Capital, coupled with strong demand from new investors including a cornerstone
investment by Newstrike Brands, a leading Canadian licensed producer whose strategic partners include
Canada’s iconic musicians The Tragically Hip.

cr-cartridge-1

The funding comes at a pivotal time for Greentank, with anticipated revised cannabis regulations coming
into effect in late 2019, permitting the legal sale of vapes across Canada. The Company, which
experienced annual revenue growth of nearly 300% in 2018, is now working with over 130 brands in the
United States and international markets and has signed partnerships with over a dozen licensed producers
in Canada including some of the largest in the country. Greentank also recently announced the launch of
a new certified child-resistant vaporizer cartridge, designed exclusively for the cannabis industry. The
capital raise will be used to help the Company scale operations, accelerate product innovation, and attract
top talent.

According to BDS Analytics, vaping is rapidly becoming the number one cannabis consumption method
for recreational and medical use in the United States. In California, vape as a category accounts for roughly
30% of all legal cannabis sales. The appeal of vaporizers, whether it be the discretion they offer, their
convenience or the easy entry point they are to new cannabis users, represents a growing trend in the
marketplace. Consumer demand, led by vaporizers, is propelling concentrates toward an estimated $8B
in retail sales in 2022, outpacing growth in traditional flower sales. Vape sales are expected to hit $6.5B in
the same timeframe.

“This financing will enable Greentank to capitalize on new opportunities on a global scale. 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,” said Corey Koffler, Green
Tank Technologies Chief Operating Officer.

“Our strategic investment in Greentank 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, 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 Greentank to design and deliver highly
innovative vaporization hardware specifically designed to work seamlessly with our unique cannabis
extracts.”

INFOR Financial Inc. acted as financial advisor to Greentank in respect of the financing.

About Greentank

Greentank designs, develops and manufactures innovative, high-performance vaporization
hardware exclusive to the cannabis industry. The company is committed to providing licensed producers
and extractors with state-of-the-art vaporization technology, engineered specifically for each brand’s
extract formulations.


Tagged with: , , , ,