Michigan marijuana firm Skymint’s assets bought from receivership

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Tropics LP has acquired most of the assets of Michigan cannabis company Skymint, which entered receivership this year after defaulting on a loan from Tropics.

Tropics, which recently put in a $109.4 million stalking horse bid for Skymint, is owned by an affiliate of SunStream Bancorp, which is a joint venture involving Canadian cannabis company SNDL.

The sale order will see Tropics take on “the purchase or assumption of 21 retail leases with dispensaries that produced annualized sales of approximately $68 million in September 2023,” as well as certain “cultivation and equipment leases required for continuing operations,” SNDL said in a news release.

Tropics is not buying “uneconomic cultivation, equipment, and retail leases representing more than $12 million of annual fixed obligations,” SNDL said.

The assets acquired from Skymint will be part of SunStream USA, described as a  “U.S. platform with one or more independent third-party investors which will be independently managed and governed.”

“The sale order brings greater certainty, enables management at (Tropics entity) Skymint Acquisition Co. to focus on serving Michigan consumers and creates tangible U.S. optionality,” SNDL CEO Zach George said in a statement.

The sale order was approved Oct. 12 and is expected to close in the first quarter of 2024.

Skymint’s original senior secured loan from Tropics was worth $70 million when it was announced in September 2021.

Skymint had defaulted on that loan by March 2022, SNDL said.