Creditor bids $109 million for assets of Michigan cannabis company Skymint

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Embattled Michigan marijuana cultivator and retailer Skymint, which is in receivership, will auction off its assets.

According to Crain’s Detroit Business, Alberta-based Tropics LP has offered to acquire the assets of the Ann Harbor, Michigan-based company for $109.4 million, effectively setting the minimum purchase price.

Tropics LP is Skymint’s largest creditor.

Tropics LP is an affiliate of SunStream Opportunities LP, which itself is an affiliate of SunStream Bancorp.

The latter is a joint venture sponsored by Canadian cannabis company SNDL, according to an SNDL regulatory filing.

Assets include leases on 23 stores and two cultivation sites, Crain’s reported.

In March, Canadian investment firm Tropics filed a lawsuit claiming Skymint owed them more than $127 million, prompting the Ingham County Circuit Court to place the marijuana company under the control of receiver Gene Kohut of Trust Street Advisors in Detroit.

Any new bidder would have to top the $109.4 million bid and Skymint’s existing debt to Tropics, which alleges that Green Peak Innovations – operating as Skymint – generated $153 million less than what it forecast in 2022.

In mid-April, Skymint Chair and CEO Jeff Radway resigned from the top posts only weeks after the financially strapped company was placed under receivership.

In early April, a Michigan judge ordered marijuana retailer 3Fifteen Cannabis to relinquish control of several stores to Skymint after ruling 3Fifteen violated the court’s receivership order.

According to a November 2022 regulatory filing, SunStream advanced an initial senior secured term loan to Skymint for $70 million to help fund its acquisition last year of 3Fifteen and 12 of its stores across Michigan.

3Fifteen was a portfolio company of New York City-based Merida Capital Holdings.