A Michigan judge ordered marijuana retailer 3Fifteen Cannabis to relinquish control of several stores to competitor Skymint after ruling 3Fifteen violated the court’s receivership order.
According to Crain’s Detroit Business, Skymint reopened stores in Battle Creek, Camden and Grand Rapids on April 1 after an Ingham County Circuit Court judge ruled on a legal fight between the two companies.
The judge ordered 3Fifteen to return $494,045 in funds that the Birmingham-based company removed from its accounts at Live Life Credit Union, Crain’s reported.
The judge also ordered Live Life to return access to those accounts to Skymint employees.
3Fifteen, which was acquired in 2021 by Skymint, an Ann Arbor-headquartered cannabis cultivator and retailer, had “challenged leadership of the company and retook control of several stores acquired in the deal,” according to Crain’s.
Last month, after a Canadian investment firm filed a lawsuit claiming Skymint owes more than $127 million, Ingham County Circuit Court placed the marijuana company under the control of receiver Gene Kohut of Trust Street Advisors in Detroit.
Calgary, Alberta-based Tropics LP alleges in its suit that Green Peak Innovations, which operates as Skymint, generated $153 million less than what it forecast in 2022.
The lawsuit, filed March 3, alleges:
- Skymint was spending $3 million per month.
- Subsidiaries have borrowed more than $81 million from Tropics since 2021 and have been “chronically in default of their loan obligations,” the Lansing State Journal reported.
In a concurrent lawsuit, New York investment firm Merida Capital Holdings filed a complaint in Oakland County Circuit Court alleging Green Peak Innovations misrepresented its financial standing and was mismanaged, according to Crain’s.
Both Tropics and Merida were involved in the deal that allowed Skymint to acquire 3Fifteen.