The publication said it saw a presentation that PAX had put together for investors which showed that the San Francisco company was looking to only raise $150 million. PAX apparently revised its target “after encountering strong demand from investors who wanted to contribute more,” The Information reported.
The increased interest in the company is likely due to investors betting on the fact that marijuana will be legalized for recreational use. PAX, in particular, estimates it will notch $113 million in revenue this year with potential for that to grow by more than ten times by 2023, according to The Information.
So far, PAX has raised a total of $121.7 million and counts Tiger Global Management, Tao Capital Partners, Evolution VC Partners, and Fidelity Investments among its backers. It raised $20 million just last October in what CEO Bharat Vasan described to Bloomberg as “a deliberately small round.”
The genesis of the company goes back to 2004 when Adam Bowen and James Monsees, as Stanford grad students, began developing an e-cigarette prototype out of foam. They ultimately formed an e-cigarette company called Ploom. Ploom’s ModelTwo product was acquired by Japan Tobacco International in 2015. The duo bought back JTI’s stake in their company and renamed it Pax Labs, of which e-cigarette company JUULwas ultimately spun out. In December, we wrote about how reports that Marlboro maker Altria Group Inc. was going to take a 35 percent stake in JUUL were true. As such, Bowen and Monsees were set to become the first e-cigarette billionaires.
Published: April 16, 2019
Founder & Interim Editor of L.A. Cannabis News