San Francisco, California-based electronic vaporizer company, Pax Labs, is teaming up with four Canadian cannabis producers for a sustained supply of a variety of marijuana-based products in order to meet the anticipated growth in demand for cannabis vaporizers. This is coming ahead of the October launch of new legal product formants. Vaping is the most popular form of recreational cannabis use in U.S. states where it has been legalized.
Consequently, the new partnership will see Aurora Cannabis Inc. (TSE: ACB), Aphria Inc. (TSE: APHA), The Supreme Cannabis Company (TSE: FIRE), and Organigram Holdings Inc. (CVE: OGI) supply Pax Labs with resin, distillates, and cannabis extracts for their Pax Era pen-and-pod vape system. The device in view is similar to a product by Juul which is currently a dominant player in the U.S. tobacco vape market.
According to the senior vice-president for marketing at Organigram, Ray Gracewood, the company is setting aside approximately one quarter of its cannabis for the concentrate market in anticipation of the rise in demand. In a phone conversation with BNN Bloomberg, Gracewood said, “We think the vaporizer market will be the second-biggest market next to dried flower in the short term and the biggest driver to get new consumers in the space.”
There are reports that many cannabis-based companies already have vape strategies in their business plans although details remain to be seen. However, Gracewood revealed Organigram was making plans to produce disposable devices and cartridges for the Canadian market.
The growing innovation in vaping is a big deal because it may just be the key to introducing legal cannabis to users who detest the traditional smoking method thereby further expanding the market.
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