Skymint is Michigan’s leading cannabis cultivator and retailer, but the company is in financial difficulty. According to Crain’s Detroit Business, in March they were placed under receivership after Calgary-based Tropics LP sued, alleging Skymint’s subsidiaries owed $127 million. Tropics, an affiliate of SunStream Bancorp Inc and part of SNDL Group LLC is planning on bidding at auction for assets owned by Tropics. Dustin Walsh of Crain’s discusses this development further with us.
Skymint’s Receivership and Debt Lawsuit Unveiled
SKYMINT Premium Cannabis, Michigan’s largest recreational marijuana license holder, is offering one Michigander-free weed for an entire year! Entries into their contest are now being accepted until Jan 30 and those aged 21 or over can enter. Winners will receive $500 of in-store credit each month beginning Jan. 31, 2023, until Jan. 31, 2024. Skymint operates two cutting-edge grow facilities and owns and manages a 1,000-acre sun-grown sustainable farm near Dimondale in Ann Arbor.
Michigan Cannabis Company operates multiple locations across Michigan, from small neighborhood shops to larger dispensaries with more extensive selection and lounge-style experiences. They also have an established medical program for qualifying patients as well as delivery services across Michigan. Skymint’s latest offering is a boutique-style retail store in Saginaw – its 16th location overall and third in the Great Lakes Bay Region. Situated at 700 Gratiot Ave on Saginaw’s west side, guests are greeted with warm wood tones and natural stone accents that create an inviting ambiance when entering.
Skymint provides its services online, curbside pickup, and via mobile apps on iOS and Android devices – in addition to offering physical locations. Customers can purchase merchandise at its flagship store in downtown Ann Arbor. However, its future is now unclear after being placed under receivership in March. A lawsuit filed by Canadian investment firm Tropics alleges that Green Peak Innovations. Which operates Skymint which owes $127 million. Tropics also claims that Skymint subsidiaries owe over $81 million in loans from them which have been “chronically in default” since 2021.
The lawsuit names Green Peak and its subsidiaries as defendants as well as 3Fifteen. An innovative retail chain Merida Capital created for the marijuana industry. Merida and Tropics participated in providing Green Peak with $78 million in financing that allowed it to acquire 3Fifteen in September 2021.
Cannabis Innovation, Struggles, and Expansion
Skymint Dispensary of Michigan is a fully licensed medical and adult-use dispensary dedicated to offering patients and adults quality cannabis. Their Farm to Stash philosophy involves cultivating products carefully while respecting the environment, crafting diverse offerings with exceptional precision, and sharing production processes with customers so they can make informed choices about which product best meets their needs.
This company has made a long-term investment commitment to the cannabis market and aims to become one of the United States’ premier vertically integrated marijuana companies. Through an expansion strategy across multiple states and this capital injection, they are moving closer toward their goals of becoming an industry leader vertically integrated marijuana company. Their new facility will provide the infrastructure necessary for growth while expanding cultivation capabilities.
SKYMINT Reserve stands at the forefront of innovation and premium craftsmanship. Their dedication to perfecting their growing process has yielded exceptional terpene and cannabinoid profiles for an engaging high. This exclusive collection of superior flowers is carefully hand-selected from the best batches at SKYMINT dispensaries, where each batch is meticulously tested to ensure purity, consistency, and potency – this approach to cultivation ensures they produce some of the highest-grade blooms in Michigan.
SKYMINT has become a household name in Michigan’s marijuana industry due to its distinctive green-and-white logo. Unfortunately, however, the company has found itself struggling with debt and now finds itself under receivership by an investment firm that owes the former Green Peak Industries, now Skymint $127 million. Crain’s Detroit Business reporter Dustin Walsh joined WKAR’s Megan Schellong to discuss this situation further. As construction began on the Big Rapids facility, some minor structural challenges that needed quick resolution emerged.
Premium Cannabis Retail & Financial Strategies
SKYMINT has fostered an engaged community of consumers and advocates who are committed to its brand. From shopping at one of its 24 physical ordering its cannabis online to offering premium products in an intimate setting. This can be seen in the design of its new flagship store in Big Rapids where interiors feature luxurious tones and timeless materials.
Experienced retail patrons will appreciate specialized lighting, unique seating, and elegant fixtures that enhance the retail experience. The space is organized around a gabled slat wall structure which serves as an impressive entrance. Welcoming guests from nearby Ferris State University campus as well as surrounding community members. Tapered steel beams clad with a bright red coat of paint create rhythm throughout the space for patrons.
SKYMINT Reserve stands out from the pack by combining superior terpene and cannabinoid profiles for an engaging high. Made of superior-grade cannabis with special attention paid to taste and aroma. It is carefully washed using RO water before freeze-drying and cold pressing to rosin concentrate for unparalleled flavor and potency. Solventless Concentrates from SKYMINT Reserve offer another great way of experiencing marijuana’s benefits without the harsh effects of THC and CBD.
SKYMINT’s debt issues surfaced following its closing on a $78 million capital injection that enabled it to acquire 3Fifteen in September 2021. That financing consisted of both a $70 million senior secured term loan from Tropics LP, an affiliate of Sundial Growers JV with Merida Capital Holdings, and an $8 million equity investment by New York-based Merida.
Skymint used its new funding to complete its acquisition of Michigan retailer 3Fifteen Cannabis and open several more stores throughout Michigan. These additions made Skymint Michigan’s largest vertically integrated cannabis operator with 24 stores offering six brands such as SKYMINT Reserve, Originals North Cannabis Jolly Edibles Two Joints.
Cannabis Retail Success & Future Plans
Skymint takes great pride in crafting elegant product packaging. Using custom labels designed by their in-house graphic designers and printed on high-quality Eco-friendly recycled content paper labels. Each label fits seamlessly across its product lineup to form a recognizable and coherent brand identity for Skymint’s customers. The new label also makes it easier for customers to locate products. Its simple yet clean design is pleasing to the eyes. It allows customers to quickly identify a product quickly by glance alone. Furthermore, printing on water-resistant paper helps protect its product. Skymint Cannabis Retail of Lansing, Michigan remains in business despite filing for receivership earlier this year.
Recently, they reopened three dispensaries that had been involved in legal disputes. With 3Fifteen Cannabis, planned a major giveaway before 4/20 day. And closed a $78 Million funding round, showcasing their resilience despite the receivership proceedings opened against them. Tropics’ investment will enable Skymint to accelerate its growth strategy while strengthening its balance sheet. According to an announcement by the company. It marks another major investment for Sundial Growers of Toronto-based Sundial Growers. Most recently Tropics provided them with a $70 million senior secured term loan. Merida Capital Holdings of New York provided an $8 million equity investment.
The Skymint brand operates as Michigan’s largest cannabis distributor and holds widespread recognition within its industry. Their latest investment will enable them to accelerate growth even further. Expand into additional markets, while they are planning a 146,000-square-foot facility. At Summit Sports and Ice Complex in Dimondale slated to be complete by August 2022. Megan Schellong of WKAR recently spoke with Dustin Walsh. Senior reporter for Crain’s Detroit Business who covers Michigan’s emerging cannabis industry. Dustin provided insight into what had occurred at Skymint and what its fate portends for future businesses in Michigan.