The Smoke Cartel offering is now closed and is no longer accepting investments.

Smoke Cartel

Smoking Accessories

Small OPO
Savannah, GA
Consumer Products
Accepting International Investment
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Glass For Good

Smoke Cartel seeks to nurture your relationship with our products.

Smoke Cartel started operations in Georgia in 2014 and as of July 2017, is traded on OTC Markets under the symbol SMKC. 


The focus of the Company’s business operations is to provide smoking accessories and glass pipes as an online retailer and wholesale distributor. 


The Company operates in different verticals within the online headshop industry, consisting of but not limited to sales of consumer products through online retail, sales of wholesale products to other retailers, design and manufacturing of branded products, and shipping and fulfillment services. 


Smoke Cartel is a household name in the headshop and glass industry, and its products can be found in retail stores across the US and internationally. The Company operates its online retail division through SmokeCartel.com and its wholesale division through Glassheads Distribution.


We believe that Smoke Cartel has led the industry standard in all aspects of operations including product design and development, fast and reliable shipping, excellent customer service, and organic online traffic rankings.

The Offering

$1.50/share of Common Stock

When you invest you are betting the company’s future equity value will exceed $31.5M.

For details on the bonus, please see the Offering Summary below.

To create a meaningful experience for all types of consumers while leading the way in the smoking accessories industry.

What We Have Accomplished So Far

Smoke Cartel started as a $600 investment and has grown to a nearly $6-million revenue company with sustained and continued growth and an increase in revenue each year since inception. 


Smoke Cartel controls every level of operation of both retail and wholesale divisions, including proprietary software, product design, manufacturing, fulfillment and distribution, marketing and sales.


Smoke Cartel has previously acquired and seen through successful integration of UPC Distribution into Glassheads Distribution, the wholesale division of Smoke Cartel, Inc.. The Company also acquired and successfully integrated Early Bird Distribution and all of its brands, which expanded Smoke Cartel into new markets, like the pet industry. 


Smoke Cartel has its own technical management team and proprietary software to handle all internal operations for maximum efficiency in warehousing and fulfillment.


Market Traction and Previous Successes


  • The retail division has over 90,000 customers in 44 countries and continues to grow its consumer base.
  • In January 2016, UPC Distribution which was rebranded as Glassheads Distribution and became the wholesale division of Smoke Cartel. The acquisition allowed the Company to expand into the wholesale market to sell to other retailers across the United States and internationally.
  • In November 2017, Smoke Cartel acquired Early Bird Distribution, and expanded its product lines into the pet industry. 
  • Revenue in 2017: $5,895,040
  • Total retail and wholesale visitors in 2017: 4,891,486
  • Site visitors in last 30 days of 2018 for all websites: 375,390
  • Average Daily Sessions visitors: 14,500

CLEAN, EASY & FUN

INNOVATION

Sriracha Sauce Rig

Avocadope Hand Pipe

HIGH-QUALITY

China Glass Water Pipe

Bubblegum Sidecar Bubbler With White Dots

What Makes Our Products Different

We believe Smoke Cartel is an established platform where people trust us to bring them the most high-quality glass, the best pricing, and the newest innovations in the industry. Our customers are always our first priority, and we strive to let them know.  We’re truly proud to make the buying experience something that is clean, easy, and fun.


Smoke Cartel designs and manufactures products for its online retail store and for its wholesale division. These products include glass water pipes, bongs, vaporizers, and other tobacco or cannabis accessories.


Smoke Cartel has covered a wide niche of glassware, and plans to focus on non-glass products and accessories in the future to expand product selection and to reach new markets.


The Company also has created, branded product lines to sell as both retail and wholesale products to target different markets including Sesh Supply, Kraken Grinders, U.P.C, China Glass, and Cinderwitch Torches.

Smoke Cartel plans to expand to new markets through acquisitions; the Company acquired Early Bird Distribution in November 2017 which allowed it to enter the pet industry with the HeadyPet product line. Smoke Cartel has identified several overlapping and growing markets like the pet industry that are easy to integrate into the online store as well as the wholesale division. 


The company's advanced technology and warehousing system is equipped to quickly receive and sell new products. This strategy allows Smoke Cartel to sell products not associated with the cannabis industry and not restricted by advertising platforms or other industry regulations.


As part of its vertical integration strategy, Smoke Cartel has its own internal software that allows the Company to seamlessly control all aspects of its operations. The software features advanced tracking abilities that are key in operating an ecommerce store. The Company has experienced web developers to continually update its software to improve performance of sales and internal operations. Smoke Cartel's advanced technology also allows the Company to track customer data and better target its consumer base. 


In addition to the use of internal data analytics, Smoke Cartel implements a combination of online and offline initiatives for sales and marketing of products and services of the ecommerce and wholesale businesses. The Company has focused on building a globally recognized brand for all of its products and marketing initiatives. Smoke Cartel has also built strong relationships with important industry figures and advertisers which helps perpetuate the Smoke Cartel brand.


Smoke Cartel has built a large social media following on its own company accounts and on separate brand accounts for its different product lines. This combined with the use of social media influencers gives the Company a strong presence on social media networks. 


Smoke Cartel uses Instagram, Tumblr, Facebook, and Twitter to target its consumer base, with emphasis on Instagram as it is the best network to target the customer demographic and to build and maintain branding for the company and each of its branded product lines. The Smoke Cartel Instagram averages about 1,000 new followers per week and this page sees the most engagement as it is an extremely visual platform. 

26,000-sq-ft warehouse in Savannah, GA

Smoke Cartel is focused on creating products that are safe for consumption and on educating the general population about the use of cannabis smoking accessories. We believe that we provide a knowledgeable, trusted resource for products through consumer education and quality assurance of products which includes testing and analysis of products, material testing, and safety and compliance testing. Smoke Cartel focuses on production, in-house engineering, and design to create the best possible projects.

We Believe We Have...

  • Innovative product design 
  • Advanced proprietary software
  • Unparalleled customer service 
  • Competitive pricing
  • Exceptional shipping service
  • Strong brand recognition

Market and Industry

Smoke Cartel sees market opportunity in the head shop and smoking accessories industry, ecommerce industry, and the cannabis industry.  The Company has vertically integrated its operations in order to easily bring new products to both online retail and wholesale markets. We've seen the market experiencing rapid growth and we believe that it will require experienced and well-established companies to take the lead. 


Head shop and Smoking Accessories Industry


In the past 20 years, the smoking accessories industry has experienced rapid growth and changes to the industry. Before this time there were very few glass pipes manufacturers. Now, according to a 2013 report from Headquest Magazine, smoke shops generate an estimated $10 billion in revenues annually in the United States, which is culled from data collected before most legalization laws had passed. The growth in the head shop and cannabis accessory industry has been rapid and is relatively new; there is not a lot of market research available right now. However, in our opinion, the demand for cannabis accessories is set to increase with the increase of the legal cannabis market.


Ecommerce: Online Retail and Wholesale Industry


Smoke Cartel’s business is conducted primarily through online commerce, which is increasing nationally and globally. The National Retail Federation (NRF) expects that online retail will grow 8-12%, up to three times higher than the growth rate of the wider retail industry.


In worldwide ecommerce sales, data from Statista anticipates a 246.15% increase in worldwide ecommerce sales, from $1.3 trillion in 2014 to $4.5 trillion in 2021. We believe The global market is shifting toward ecommerce because it offers wide product selection to consumers all over the country and the world. Ecommerce is an easier and more efficient process for most buyers and this includes the cannabis accessories market.


Statista’s data also shows that the B2B wholesale ecommerce market is worth 234.78% more than the B2C ecommerce sales. Their data shows that by the close of 2017, B2C ecommerce sales will hit $2.3 trillion worldwide while B2B ecommerce will reach $7.7 trillion. We believe Smoke Cartel’s expansion into wholesale B2B online sales adds significant value as the online wholesale market is growing at much faster rate than online retail.


Significant Market Finding:

Cannabis Industry

Recreational marijuana is currently legalized in 8 states and medical marijuana is legalized in 29 states (see graph). The Federal Government ended alcohol prohibition after 10 states had decided to pass their own legalization laws, the country is now just 2 states away from that number with cannabis. The cannabis industry and all of its ancillaries will continue to grow with legalization. 


According to Arcview Market Research, North American consumers spent $6.7 billion on legal cannabis products, which is up 34% from 2015. Arcview estimates that by 2021, the legal cannabis market will be worth $22.6 billion. 


The research report also notes that very few consumer industries earn $5 billion in annual revenue with 25% compound annual growth the following five years. Arcview estimates that this high growth rate will continue past 2021 as states will still be passing legalization laws and federal legalization is also expected in that time period.


Marijuana Business Daily predicts that the economic impact of the U.S cannabis industry will be between $47.6 and $68.4 billion by 2020. As shown in their chart below, the economic impact of cannabis in 2016 was only $16-$18 billion, which shows huge potential for the impact the cannabis market will have on the U.S economy.

Team & Family

Join the Cartel, we welcome everyone. You can only go up from here.

In the Press

From $600 to $5 Million in Three Years: Smoke Cartel’s Story
January 16, 2018

Sean Geng and Darby Cox, at only 23 years old, have built Smoke Cartel into one of the most successful online head shops in a growing industry. Smoke Cartel is now a leading online retailer of glass water pipes, vaporizers, and any other smoking accessory you can think of.

Smoke Cartel’s on fire
September 20, 2017

I'M NO guidance counselor, but if I were to offer any words of advice for young people, I’m pretty sure they would not be to drop out of college and start a bong company. I obviously know nothing, since that seems to be working out pretty well for Darby Cox and Sean Geng. The 23 year-old co-owner..

Savannah’s Smoke Cartel carves out new business model in burgeoning cannabis industry
April 14, 2018

Two young pioneers have positioned their Savannah-based business at the vanguard of a billion-dollar industry, and are investing not only in the future of their company, but in the future of their community. The Smoke Cartel, a mostly online-based head shop, was founded in 2013 with $600 by two...

Offering Summary

Maximum 713,330* shares of common stock ($1,069,995.00)

*Maximum subject to adjustment for bonus shares. See 10% Bonus below

Minimum 6,666 shares of common stock ($9,999)


Company
Smoke Cartel, Inc.
 

Corporate Address
1313 Rogers St
Savannah, GA 31415
 

Description of Business
Online retailer and wholesaler in the smoking accessories industry
 

Type of Security Offered
Common Stock
 
Purchase Price of Security Offered
$1.50
 

Minimum Investment Amount (per investor) 
$100.50











The 10% Bonus for StartEngine Shareholders

Smoke Cartel, Inc. will offer 10% additional bonus shares for all investments that are committed by StartEngine Crowdfunding Inc. shareholders (with ≥ $1,000 invested in the StartEngine Reg A+ campaign) within 24 hours of this offering going live.

StartEngine shareholders who have invested $1,000+ in the StartEngine Reg A+ campaign will receive a 10% bonus on this offering within a 24-hour window of their campaign launch date.  This means you will receive a bonus for any shares you purchase.  For example, if you buy 100 shares of Common Stock at $1.50 / share, you will receive 10 Common Stock bonus shares, meaning you'll own 110 shares for $150.   Fractional shares will not be distributed and share bonuses will be determined by rounding down to the nearest whole share.

This 10% Bonus is only valid for one year from the time StartEngine Crowdfunding Inc. investors receive their countersigned StartEngine Crowdfunding Inc. subscription agreement.

Irregular Use of Proceeds

The Company might incur Irregular Use of Proceeds that may include but are not limited to the following over $10,000: Vendor payments and salary made to one's self, a friend or relative; any expense labeled "Administration Expenses" that is not strictly for administrative purposes; any expense that is for the purposes of inter-company debt or back payments.

Show More
Most recent fiscal year-end:
Prior fiscal year-end:
Total Assets
$1,732,304.00 USD
$1,195,230.00 USD
Cash And Cash Equivalents
$661,131.00 USD
$307,309.00 USD
Accounts Receivable
$0.00 USD
$0.00 USD
Short Term Debt
$146,435.00 USD
$0.00 USD
Long Term Debt
$11,944.00 USD
$0.00 USD
Revenues And Sales
$5,895,040.00 USD
$4,735,441.00 USD
Costs Of Goods Sold
$2,292,628.00 USD
$1,803,181.00 USD
Taxes Paid
$106,314.00 USD
$0.00 USD
Net Income
-$59,522.00 USD
$402,047.00 USD

Risks

A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment. In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document. The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature. These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.


Updates

Notice of Funds Disbursement

about 2 months ago

[The following is an automated notice from the StartEngine team].

Hello!

As you might know, Smoke Cartel has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in Smoke Cartel be on the lookout for an email that describes more about the disbursement process.


This campaign will continue to accept investments until its indicated closing date.


Thanks for funding the future.

-StartEngine

Investor Update Video

about 2 months ago

Hello everyone,

We made a video with CEO Darby Cox discussing Company updates, watch here: https://www.youtube.com/watch?v=38qjZVrqzdk

Launch of MindCBD.com

2 months ago

Earlier this week, we announced the launch of our newest retail website: MindCBD.com


The site carries a wide range of CBD products, including oils, edibles, gummies, pet products, and a variety of vaporizers. Products are available for subscription service or for one time purchase. CBD is the non-psychoactive ingredient of cannabis, and is known to help treat conditions such as pain, insomnia, and anxiety. Smoke Cartel currently does not produce its own line of CBD products but has plans to develop a branded MindCBD product line in the future.


See the full press release here: https://www.otcmarkets.com/stock/SMKC/news/Smoke-Cartel-Launches-MindCBDcom-and-Enters-Rapidly-Growing-CBD-Market?id=205468 

Strategic Partnership with KushCo Holdings

3 months ago

Hello everyone, 

We are happy to announce to our investors and followers that we have just entered into a strategic transaction with KushCo Holdings, Inc. (“Kush Bottles”, OTCQB: KSHB) to purchase all assets of the Roll-Uh-Bowl brand, to sell through Smoke Cartel as a retail and wholesale product. 

The agreement also states that Kush Bottles will refer retail customers to SmokeCartel.com for the purchased inventory and will refer its recurring wholesale glass customers to Smoke Cartel including personal hand-offs to its top glass customers. Smoke Cartel will receive all of Kush Bottles glass inventory in addition to all of the Roll-Uh-Bowl inventory and digital assets for RollUhBowl.com

See the press release from Kush Bottles here: https://www.otcmarkets.com/stock/SMKC/news/KushCo-Holdings-Sells-Roll-Uh-Bowl-Brand-to-Smoke-Cartel?id=204865 

This is an exciting time for Smoke Cartel and we’re thankful to have loyal supporters throughout this process. We will update everyone soon about the integration of Roll Uh Bowl and other company updates! 

Notice of Funds Disbursement

3 months ago

[The following is an automated notice from the StartEngine team].

Hello!

As you might know, Smoke Cartel has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in Smoke Cartel be on the lookout for an email that describes more about the disbursement process.


This campaign will continue to accept investments until its indicated closing date.


Thanks for funding the future.

-StartEngine

Crowdfunding Week 3 - Demo Day!

3 months ago

Hello StartEngine community, 

As we start our third week of crowdfunding, we are pleased to announce we will be participating in StartEngine’s Demo Day on Friday, August 31st at 11:38am. Darby Cox, CEO and Chairman, will be giving a 5 minute pitch about Smoke Cartel’s operations and growth strategy. The presentation will be followed by 2 minutes for questions, so please join us if you can. You can sign up at this link https://startengineinfo.typeform.com/to/AExx3A 

As for our campaign, it is still progressing well, we have now raised 245% of the minimum goal. We can start using these funds to purchase new inventory and continue to grow our operations. As previously mentioned, our proprietary software Warely has helped us identify the SKUs with the highest margins and we will only be purchasing those items while continuing to cut down items from third-party vendors. 

We also expect these funds to help us continue to develop our proprietary products. Our patented pipe lighter, Viosparc, is in production and will be available for retail and wholesale customers later this year. We are continuing to seek trademarks and patents for our innovative and proprietary designs, especially as we increase our in-house product development. 

As you can see from today’s press release, we announced that we have received allowance for the trademark “Cinderwitch”, one of our unique, in-house brands of smoking accessories. See the release here: http://www.globenewswire.com/news-release/2018/08/30/1563441/0/en/Smoke-Cartel-Receives-Allowance-for-the-Trademark-Cinderwitch-for-its-Branded-Product-Line-of-Electronic-Smoking-Accessories.html 

Thanks everyone for your continued support. 

Second Week of Crowdfunding

4 months ago

We have now completed two weeks of our crowdfunding campaign and have achieved 177% of the minimum target. We want to take this opportunity to update and ensure our investors that we are actively cutting expenses to improve our operational ability for the third and fourth quarters. We just announced today a change in our warehouse and fulfillment process that will save us from warehouse expenses while simultaneously improving our shipping and fulfillment speed for retail and wholesale customers. 


We have enlisted the services of EasyPost, a San Francisco based fulfillment company that has thousands of customers, ranging from public companies to small businesses. You can read all about the change in our press release from this morning: https://globenewswire.com/news-release/2018/08/22/1555175/0/en/Smoke-Cartel-Enlists-Services-of-EasyPost-Fulfillment-to-Improve-and-Streamline-Logistics-Process.html 


We believe this cut in expenses along with a historical increase in revenue during the third and fourth quarters will improve our financials and we expect to see strong fourth quarter results. We are thrilled to enlist the services of EasyPost, as they integrate with our proprietary software solution, Warely, and will allow us to continue beta testing and improving our softwares. As we continue to cut expenses and make improvements to our business operations, we will continue to keep everyone updated with our progress and journey. Thank you for coming along for the ride!

First Week of Crowdfunding, First Goal Achieved

4 months ago

We launched our crowdfunding campaign a week ago, and we are happy to announce we have already achieved and passed the minimum goal of $9,999! Thank you to all of our early investors who believe in Smoke Cartel and our growth potential. 

We have had several people ask about our market valuation of $31.5 million even though our valuation on OTC markets has been around $25 million in the past week. We believe that our company valuation will exceed $31.5 million as we get our revenue growth and business operations back on track after setting the foundation for growth at the start of this year. We have also been asked about our loss so far this year, which we would like to help clarify. The loss comes from expenses of going public and hiring professional staff, along with moving into a larger warehouse space and its accompanying costs to accommodate our growth. We are reducing employee expenses this quarter and expect strong results again by the fourth quarter. Even in our most successful years, the first and second quarters have historically been the slowest for the company, and our fourth quarters are historically the best. This year we have also seen higher product margins; we plan to continue this by only selling products with the best margins, which we have identified through our proprietary technology and information system Warely. 

If you look at other public companies in our industry, Kush Bottles or Namaste Technologies, you’ll see that their market valuations are significantly higher than ours. Kush Bottles market cap is currently around $305 million and Namaste Technologies currently has a market cap around $302 million. As part of the online headshop and glass wholesale industry, we are not directly affected by regulations in the cannabis industry, but we do benefit from the expansion of the legal cannabis market. Recreational marijuana is currently legalized in 8 states and 29 states have legalized marijuana for medical purposes. Our business benefits as legal marijuana continues to expand across the United States and the demand for cannabis accessories is increasing. We believe that our company’s growth combined with the expected growth of the cannabis industry in the next few years will allow us to become comparable to these companies. This crowdfunding round is an opportunity for friends, family, and other interested investors to gain a position in our company while we are still in the early stages of being a public company. So thank you all again for believing in our potential. 

We are currently working on growing our revenue streams through new Smoke Cartel branded product development while also reducing our number of SKUs and amount of third party vendors to cut down costs and keep our high margins. We are also improving relationships directly with manufacturers as we increase our own product development to keep margins high on all new Smoke Cartel branded products. 


Please stay tuned for more company updates! 

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