vape Archives - Green Market Report

StaffStaffMarch 28, 2019
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4min2480

March 28, 2019 – TORONTO, CANADA/AxisWire/ Green Tank Technologies, (“Green Tank” 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.

The funding comes at a pivotal time for Green Tank, 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. Green Tank 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 Green Tank 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 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, 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.”

About Green Tank Technologies

Green Tank Technologies 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.


Debra BorchardtDebra BorchardtMarch 11, 2019
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5min6190

There’s an old saying that ‘all politics is local’ and it turns out the same goes for marijuana prices. A new report from cannabis data company Headset looked at pricing trends from four key states that have fully legalized cannabis including two states with mature sales data and two fairly new states.

The study examines average item prices throughout 2018 and for the first two months of 2019. The sales data comes from customers who participate in store loyalty programs, as well as the $4.5 billion in transactions that Headset tracks.  

The general rule of thumb is that California prices are high by all measurements and Washington has the lowest prices in the country.  However, that isn’t the end of the story. California’s adult use sales are fairly young and with the changes in regulations last summer, the market changed dramatically. The report notes, “You might think Colorado’s vertical integration would drive the price down…but it seems to actually keep prices higher.” Various taxes within each state and the age group of consumers also affects the data for prices paid.

Headset found that the average item price (AIP) across California, Washington, Nevada, and Colorado ranged from $15-$30. States with the most mature markets had the lowest prices. Washington state started out with high prices, but the prices dropped as competition and supply drove them down and at this point, there is really no room from more price reduction. Prices in Nevada also fell as the market matured except for certain products. California’s average prices jumped by $5, but it is expected that eventually, the state’s prices will fall.

Vapes Are Pricey

Vape pens are the most popular cannabis category and the most expensive. The AIP is approximately $43. Apparently, vape pens are not as easy to buy in the illicit market which removes that level of competition keeping prices high. Nevada is the highest priced state with an AIP that comes in at $48. Headset suggests that the state knows it is mostly dealing in tourist trade and able to keep prices high.

The report did a deeper dive into the vape pen price per gram and again Nevada’s is the highest with a whopping $96 price per gram for vape pens. The lowest is Washington’s, whose AIP for vape pens is $25, but the price per gram for the pen is $36, almost three times lower than Nevada.

The price per gram measurement works well for other smokable forms like flower, pre-rolls or concentrates. Nevada is, once again, the most expensive at a price per gram for flower of $13.70 and $14 for pre-rolls. Colorado has the cheapest flower at $4.60 and Washington has the cheapest pre-roll at $5.50 per gram.

When it comes to other form factors that aren’t smoked like edibles, beverages, tinctures or capsules, the measurement is milligrams per THC. In this category, the states are very close in price with only cents separating the expensive from the cheap.

Millennials Are Bargain Shoppers

Older people with more disposable income are willing to pay higher prices for cannabis products versus millennials and post-millennials. The younger group spends on average 20% less on single grams, while baby boomers will pay 10% above the average. The younger group is willing to buy in bulk if they think they can get a good price. They are bargain shoppers. Headset thinks bulk packaging could become an important market as more millennials push for value shopping.

The report suggests that AIP isn’t the only metric to watch to see where prices are headed. They say watch the price per gram and the package size.


StaffStaffFebruary 12, 2019
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3min13520

The vape pen category has shown enormous growth in the cannabis industry, but not all vapes are created equal. Consumers are also beginning to show a preference in their purchasing habits when it comes to vapes as well. Kurvana has kept an eye on these trends and has managed to make a product to satisfy multiple consumers.

Cowen & Co.’s senior analyst Vivien Azer wrote that vape pens have grown their dollar share from 5.8% of the market in January 2016 to 14.7% in May 2018. Vapes have become the number two form factor in the cannabis industry trailing flower which commands a robust 52% of the market. However, flower sales have been losing ground to the vape pen sales.

Azer also determined that pricing varies for vape pens according to the market. For example, a vape pen in Washington state averages $26.31, while in Nevada that number jumps to $49.14. Consumers are also demanding to know more about their vape pens as the market gets flooded with products from dubious sources. Some companies buy their hardware from China from the same manufacturers that make e-cigarettes, but tobacco oil is thinner than cannabis oil, so additives are introduced in order to use the hardware.

Kurvana sources only the highest quality raw flower from organically grown cannabis, provided by trusted farmers well-known to the industry. Kurvana uses a proprietary 50-step process to purify the essential cannabinoids, tasty terpenes, and natural ingredients that contribute to the unique experience of vaping with full spectrum Kurvana oil. They never introduce extra terpenes or additives of any kind, because they distract from the plant’s original essence.

Consumers are also leaning more towards mood based vape pens versus strain based. Kurvana has captured both sides of this market. The ASCND pens offer 10 different strains that are clearly marked as to whether it is indica, sativa or a hybrid. Then the company’s website breaks it down even further into an easy to follow chart so that consumers can locate the symptom they want to address and find the pen to best address it.

The products are only available in California at this time, but with this is a high potency, attractive pen with a great taste that consumers will want to find.


Debra BorchardtDebra BorchardtJanuary 3, 2019
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4min10200

TILT Holdings Inc.  (CSE: TILT) (OTC: SVVTF) has acquired vape technology company Jupiter Research in a deal valued at $210 million. The acquisition is expected to close on January 31. TILT’s goal was to expand its technology ecosystem and B2B reach across the supply chain.

“Our latest acquisition of Jupiter Research is paramount to our goal of consolidating and centralizing services for all industry verticals: cultivation, production, and retail,” said Alex Coleman, Chief Executive Officer of TILT Holdings. “Vaporization is increasingly becoming the preferred method for cannabis consumption. With Jupiter’s proprietary inhalation technology, our offerings in this category are going to be unparalleled.”

Jupiter Research was founded in 2015 by prior NJOY product developer Mark Scatterday and Bob Crompton, founded in 2015. Jupiter Research produces power supplies and cartridges specifically designed for cannabis oil in the market today, featuring exclusively ceramic CCELL technology. The company said that Jupiter has achieved annual orders over US$100M in 2018, ending the year with over a US$30M sales backlog.

“Our rich heritage in CPG and e-cigarette product innovation combined with long-standing manufacturing partnerships in China provided us a market leading advantage to bring advanced high-performance technologies to the cannabis industry,” said Scatterday, the company’s President.

Crompton added, “Jupiter Research’s monthly sales ccontinue to increase 15 percent month over month, ending Q4 with booked orders exceeding US$44M.  The opportunity to combine the synergies of the TILT portfolio of companies is expected to add to our rapid growth.”

TILT only recently began trading on the Canadian Securities Exchange under the ticker symbol “TILT” after its acquisition of Standard Farms.  TILT acquired Standard Farms for $12 million in cash and $28 million in securities. Securities for TILT were issued at C$5.25 per common share and, pending regulatory approval, the acquisition is expected to close on March 31, 2019.

Also last month, TILT  acquired the cannabis distribution company Blackbird Holdings Corp. for $50 million. Providing logistics operations and software solutions for operators in the cannabis supply chain, Blackbird works with more than 250 wholesale and retail cannabis operators in the states of California and Nevada; with plans to increase its footprint in California and to expand into Arizona and Massachusetts.

Terms Of The Deal

TILT said that the deal consists of $70M cash and $140M in units exchangeable for 56,116,723 shares of TILT.

 


StaffStaffMarch 14, 2018
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3min13370

CannaRoyalty Corp. (CNNRF) through its subsidiary, Trichome Yield Corp. will provide up to $2.5 million to 180 Smoke to fund an expansion of its retail footprint in anticipation of Canadian adult-use cannabis legalization.

180 Smoke was co-founded by world-renowned heart surgeon Dr. Gopal Bhatnagar, and is an Ontario-based vape products company. 180smoke.ca is the highest trafficked vaping website in Canada and currently attracts 64% of Canadian vape-related web traffic. The money will support 180 Smoke’s retail and cannabis product offering expansion and help the company open 11 new stores as well as expanding the company’s cannabis hardware offering. 180 Smoke and CannaRoyalty’s subsidiary, CR Advisory, will also work together to bring cannabis products to the Canadian marketplace.

“Forming a relationship with leading Canadian omnichannel retail leader 180 Smoke ahead of adult use legalization represents a compelling and unique first deal for Trichome. It also presents CannaRoyalty shareholders with multiple paths to value creation,” said Marc Lustig, CEO of CannaRoyalty. “180 Smoke’s harm reduction platform has enabled the company to develop an authentic and responsible Canadian retail experience that has served Canadian cannabis consumers for years. This unique model makes them a stand-out – not just in Canada – but also positions them favorably against established cannabis retailers we have seen in the mature California market, where we have benefited from investing in and securing distribution pipelines into retail sales channels.”

According to the statement, 180 Smoke will receive up to $2.5 million from the financing, with an initial investment of $500,000 to be followed by additional investments up to the $2.5 million maximum, subject to satisfactory due diligence and other customary conditions. The Financing will be secured against the assets of 180 Smoke. Further, 180 will issue warrants to acquire shares of 180 Smoke at a pre-determined exercise price for a three-year term.

180 Smoke reported $7.7 million in net sales for 2017 and currently has 16 retail stores in its network. 87% of its net sales come from vape and nicotine related products, while only 12% comes from cannabis vape products.


Debra BorchardtDebra BorchardtOctober 25, 2017
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3min35120

While some in the cannabis industry obsess over strains and the nuances of those flavors, the largest cannabis brand O.penVAPE has rolled out a new line of flavored vapes. The O.penVAPE ISH line was launched on Tuesday with three flavors: Bavarian Cream, Blue Raspberry, and Watermelon.

The company said that it was responding to a lot of customer feedback from people that wanted a flavored cartridge. “It appeals to a totally different market than say – the craft reserve. Plus, the addition of flavoring sets it apart in this category,” said Chris Driessen, President, Organa Brands U.S. “The customer is someone who is perhaps not a strain aficionado. It’s someone looking for rich flavor without a strong marijuana taste.”

The ISH in the new product name stands for indica, sativa, and hybrid. The indica dominant brand is Bavarian Creme flavoring, the sativa dominant is the Blue Raspberry flavoring and the hybrid dominant is the Watermelon flavoring.
O.penVAPE is known for its tight marketing and fresh packaging has refined the vape pen even more with this new product. It has a more sleek profile and now comes with a rechargeable unit instead of a throwaway battery. “The eco-friendly aspect stems from the rechargeable functionality of the pen. People love the disposable form-factor, but we hate the idea of all those batteries ending up in a landfill, so we added the ability to recharge,” said Driessen.
There certainly seems to be a customer desire for fruit flavored marijuana. High Times Magazine published a list of the top cannabis strains from the Cannabis Cup competitions a few months ago and the list contained names like Strawberry Banana, Orange Bangi, LSF Lemon Cookies, and Schlemons. Leafly’s staff picks included Tangie, which was described as a “citrus dream” and Strawberry Cough described as smelling “Like it grew wild in a strawberry patch.”

“We saw a need in the space for distillates with unique flavor profiles, and after months of perfecting the design and taste, we are thrilled with the end result,” said Driessen. “I didn’t know how much I would love these flavors until I tried them- but once I did, I was really impressed with the work of our R&D team. It’s not your typical cartridge and is definitely a refreshing take on flavored distillate.”



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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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