A California cannabis company just set a new record . . .
$420 million financing.
The crazy thing is that this company is still private . . . with an IPO expected in 2019.
Pax Labs is a San Francisco maker of vaporizers. And the company previously raised $20 million in late 2018.
Initially, Pax Labs planned to raise $150 million from investors. However, there was huge demand to invest in the private company.
As a result, the California cannabis company ended up raising a total of $420 million in equity.
The private financing values Pax at $1.7 billion.
Pax could be secretly preparing to go public using this “stealth crossover IPO.”
Until 2017, the JUUL e-cigarette brand was owned by Pax Labs. That changed when Pax decided to spin off JUUL in order to secure a large equity investment.
Last year, Juul sold 35% of its business to Altria (NYSE: MO) for $13 billion.
Pax Labs continues to operate independently from JUUL and Altria. And it sells products with the Pax vaporizer brand.
Two notable investors led the financing.
The first backer is New York’s Tiger Global Management. The private equity firm was founded by Chase Coleman III – who launched the fund with backing from Julian Robertson’s Tiger Global fund.
Tiger Global was an early investor in Facebook. Forbes reported that the company earned a $1 billion profit on its early investment.
The second backer is Tao Capital. The growth fund was founded by Nicholas Pritzker, the former president of Hyatt Hotels.
Since 2002, he’s been making early bets on companies including Tesla Motors (NASDAQ: TSLA), Uber and SpaceX. And he also services on the board of directors of JUUL.
Pax is one of America’s most valuable privately held cannabis companies, with financial backing from two billionaire investors.
Last week the firm was able to secure a huge private equity financing from notable investors. And often, these large investments occur a few weeks before a company goes public.
Soon enough, these investors will want to cash out.
That means Pax may be looking to IPO within the next 90 days.
It’s one of the top cannabis pre-IPOs that I’m tracking right now.
Click here now here to secure Pax shares using this secret IPO crossover.
Yours in Profits,