Last year, cannabis vape pens and cartridges made up the second largest sales category in the industry. Thanks to the growing popularity of cannabis concentrates, vape sales were surpassed only by flower, showing a very specific demand among modern consumers.
BDS Analytics reports that concentrates could have an $8.4 billion hold on the cannabis industry by 2022, which is great news for the vape sector. According to the report, pre-filled vaporizers alone contributed to 58 percent of last year’s concentrate sales, giving cannabis tech companies huge incentive to invest further in the future of vape technology.
What does that kind of technology look like?
Unlike traditional e-cigarettes, cannabis vape pens require tanks with hardware that can both accommodate and heat the unique viscosity of cannabis oils without affecting its taste or euphoric side effects. Cannabis vapes are designed specifically to low-heat the oil, releasing the THC without burning the oil itself, making them safer and more cost effective for the user.
That is where the demand comes in. In an ever-expanding legal market, users are looking for convenient and inexpensive ways to enjoy cannabis. And with the legal market for concentrates opening in Canada later this year, cannabis tech companies across North America have a new reason to take a closer look at the vaping sector.
These are the four cannabis companies taking on the vape industry right now, and they are coming in from all different angles.
Green Tank Technologies launches the first certified child-resistant cannabis cartridge.
Green Tank Technologies, a manufacturer of high-performance vape hardware, launched the very first certified child-resistant cannabis vape cartridge earlier this month. According to the press release, the new Spectrum CR series of vape comes with a new kind of capping. Rather than relying on a press device, it screws together tightly, keeping the oil inside safely away from children.
The cannabis company commissioned the Consumer Product Safety Commission to test the new Spectrum CR. The vape pen met all of the current standards for child-safe packaging, and even passed a panel of three to four year old children who were unable to open the cartridge.
In light of their new product, Green Tank recently closed on their Series A Financing, securing $14 million for the continued development of new products. The company also intends to focus on scaling their operations for a global market. Green Tank Technologies currently represents over 130 brands in the United States, and has signed partnerships with more than a dozen licensed producers in Canada awaiting the launch of concentrate sales.
Resolve Digital’s smart vaporizer receives the first cannabis-related medical device license.
Another first in the industry, a line of smart vaporizers designed by Canadian-based tech company Resolve Digital received Health Canada’s first license for a cannabis-related medical device. The new smart vapes are designed specifically to help patients control their dose. Cartridges are pre-filled with different cannabis formulas designed for patients’ different needs, and patients simply insert them into the vape pen as needed.
“Licensed medical devices, such as Resolve's medical vaporizer, are focused on filling the void for consistent and standardized inhalational dosing for the medical cannabis industry,” explained Dr. Amol Deshpande, a member of Resolve’s scientific advisory board, in last week’s press release.
The company believes that, by making dosing more transparent and easy to understand, physicians and patients both will become more comfortable with prescribing and using medical cannabis. In order to make that transparency a reality, Resolve is further using their smart technology to develop an app that will help patients understand their medical conditions, medical history, lifestyle, and the effectiveness of current cannabis doses in order to improve their overall medical cannabis experience.
Planet 13 launches new line of disposable vape and concentrate products.
After the successful launch of their TRENDI line in November last year, Planet 13 Holdings (CSE:PLTH) (OTCQB:PLNHF) is hitting the market again with a new line of disposable cannabis vapes called Leaf & Vine. Larry Scheffler, co-CEO of Planet 13, describes the vapes as “a more casual social experience”, noting that the cartridges are pre-filled with high-CBD strains of cannabis.
Because the pot stock is focused on curating a customer experience through their cannabis superstore as well as their cannabis products, these disposable vapes are marketed for the on-the-go consumer who is looking to spice up their evening with something new without being overwhelmed by THC. Conveniently, Planet 13 launched the new vapes immediately on Wednesday, making them available to consumers who visit their Superstore right off the Las Vegas Strip.
The new vapes also launched simultaneously with the company’s announcement that they earned nearly $5.5 million in revenue in the month of March alone. As nearly 2000 customers visit the store on a monthly basis, Planet 13 is recognizing the need to create new products like these for the wide variety of cannabis consumers that are looking for new ways to experience legalized cannabis.
Eureka Vapor to enter Canadian markets after being acquired by North Bud Farms Inc.
North Bud Farms Inc. (CSE:NBUD) (OTCQB:NOBDF), a Canadian company currently pursuing licensing for Pharmaceutical and Food Grade production in the new 2019 market, entered into an LOI to acquire the Los Angeles-based company Eureka Vapor.
Eureka is a licensed manufacturer of cannabis vape cartridges, batteries, and disposable vape pens designed to work with their unique brand of CO2 extracted cannabis oils. The new acquisition by North Bud will help Eureka expand out of California and Colorado and into the new concentrate sector of the legal Canadian market.
“We believe that vape cartridges represent a high margin and high-growth product segment of the market,” said North Bud CEO Ryan Brown. “The Eureka team are proven operators and possess an unmatched product knowledge which is evidenced by the strong brand loyalty that they have established.”
The cannabis companies will be working together to introduce the Eureka line of cannabis vapes in the fourth quarter of 2019 when the sale of concentrates will finally become legal in Canada.