Howard Panes: The Logic E-Cig Billionaire’s Newest Ventures

Most people have never heard the name, Howard Panes. And that’s fine. But he’s the reason I’m in Florida. It’s funny how certain people can change the trajectory of your life, right? Now, if you don’t know who he is, let me give you a quick recap.

Howard Panes is the billionaire founder of Logic. He’s a pioneer in the electronic cigarette industry. But lots of people don’t know what he went through in his life. At 44 years old, he was broke and hopeless. He was on the edge of despair. When the bank took his house in a short sale, he had no idea how he would bounce back.

After 24 failed startups, everyone thought he was a loser. His wife left him and he struggled to take care of his kids. He felt like a failure in every single way possible. He tried everything to make money. And every single business he tried failed. It was a vicious cycle that he didn’t know how to break.

Then, one day, he had an idea. He saw someone smoking an electronic cigarette. But it was the old version. The one you had to plug in, was bulky, and needed to be charged. It was complicated and cost over $200. But seeing that person smoke it lit his brain like wildfire.

Who Is Howard Panes?

Howard Panes is an inventor and entrepreneur who has tried every type of business. For years, he was a personal trainer in New Jersey. He owned a gym called HowFit that he wanted to franchise. But the business was bleeding him dry and he couldn’t keep up with his expenses.

Right next door to his gym was a hair salon owned by a man named, Eli. But what made him stick out was his penchant for chain-smoking cigarettes.

Howie would often see him outside smoking and talking on the phone. That’s when it hit him—the idea for creating a disposable electronic cigarette. He wasn’t a smoker, but he knew exactly who to ask. It was Eli and he often recounts the story of telling him his idea.

However, as soon as he told Eli his idea, he hated it. He said electronic cigarettes were bulky, impossible to figure out and cost a fortune. But Howie’s idea was different. They were going to make an electronic cigarette that was disposable.

And just like the big tobacco manufacturers they would be coming back again and again to purchase more. Eli loved the idea and said, “It’s gold baby, let’s cash it in!” That was the start of the most wild entrepreneurial ride that I’ve ever heard.

The Rise Of Logic

Howard Panes was broke at the start of Logic. The bank had taken his house back in a short sale. And he was in the midst of a divorce from his wife. Most would have given up on life. But Howie didn’t. He went full force. His situation fueled him to reach for bigger and better.

After Eli agreed to partner they shook on it. They both needed $10,000 to fund the business. Howie asked for a loan from his dad. He agreed. And to this day, Howie always says he could never have done it without help from his dad.

It was a struggle for months. Developing the concept and flying to China for the manufacturing was a major stress. Especially in the midst of everything he was going through. But he did it. And those next few years were a meteoric rise to the top.

Howie went store to store in the New Jersey and New York areas, visiting 7–11’s and other convenience stores selling tobacco products. He stood in stores for hours at a time convincing customers to try Logic e-cigs. These disposable e-cigs were revolutionary.

In its first 18 months of operation, Logic did over $100 million in sales. Howie and his business partner, Eli were taking home $1 million per month as W-2 employees. This changed the trajectory of his life and his family’s life forever.

The Sale Of Logic

Logic has done billions of dollars in sales. And was eventually acquired by Japan Tobacco as the then-largest acquisition in the space. Howie and his partner walked away with a massive windfall of cash. And it was just at the right time.

Since then, Howie has invested in several businesses through his venture capital arm Next Gen VC. Years ago he invented a product that went bust called Energy Ball. After the sale of Logic, he dove back into the fitness space and invented the first gamified planking board called Stealth.

Who Is The Owner Of Stealth Fitness?

Stealth Fitness is owned by Howard Panes, Don Brown and David Augustine. It is the best-selling gamified planking product on the market today. In fact, it was also the first gamified planking product. Stealth has dozens of games in its app. Some are free and some are available when you sign up to Stealth Premium.

What Is Mighty Yum Foods?

Howard Panes launched a company called Mighty Yum. It’s the vegan version of Lunchables for kids. Mighty Yum is currently in Costco, Target, and loads of other retailers. Based on the success of Logic, it looks like Mighty Yum might be another massive exit for Howie. He owns Mighty Yum with business partner, Marc Elkman.

Where Does Howard Panes Live?

Howie recently purchased one of the most expensive homes in Florida on the waterfront in Boca Raton. The home was originally listed for sale for $28.5 million. Howie ended up getting the house for $20 million in an all-cash deal.

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