Vape hardware manufacturer Greentank Technologies closed a Series B financing round worth $16.5 million with an unspecified “strategic investor group” that includes Canadian cannabis producer Organigram Holdings.
The funding will be used to launch new vape technology, which Greentank CEO Dustin Koffler said in statement “moves away from the traditional ceramic and wicked coil systems commonly used in most vaporizer products today.”
The technology “is expected to launch later this year and serve multiple markets beyond cannabis,” Toronto-based Greentank said in a Friday news release.
The $16.5 million funding round includes a $14.5 million equity investment from the investment group, plus $2 million in debt financing from existing shareholders.
The terms of the debt financing were not disclosed.
In a statement, Greentank said its new vape technology “will expand its reach beyond cannabis to serve the broader vape category including nicotine, e-liquids, pharmaceuticals and more.”
“These substantial technology advancements open Greentank to a much larger market opportunity.”
Organigram said its deal with Greentank includes “an exclusivity period in Canada for the new technology incorporated into 510 vape cartridges (along with other formats) for use with cannabis, including the development of a custom all-in-one device that will be proprietary to Organigram.”
The cannabis company purchased $4 million worth of Greentank preferred shares, according to an Organigram news release.
“Greentank’s vape technology will introduce a new way of heating cannabis oil without the need for a ceramic coil and will provide consumers with a 510 (vape cartridge) solution that does not contain ceramic or ceramic particle emissions,” Organigram CEO Beena Goldenberg said in a statement.