Michigan's SKYMINT Expands Footprint With $78M Financing, Acquisition Of 3Fifteen Cannabis

Michigan’s leading vertically integrated cannabis company, SKYMINT, announced Tuesday it has acquired 3Fifteen Cannabis with the closing of its concurrent $70 million senior secured term loan from Tropics LP, an affiliate of SunStream Bancorp Inc. a joint venture initiative sponsored by Sundial Growers Inc. SNDL, and its $8 million equity investment from Merida Capital Holdings.

These transactions further strengthen SKYMINT’s dominant position in Michigan, the nation’s third-largest cannabis market, and provide the company with a strong balance sheet to execute on accretive opportunities inside as well as outside of Michigan, the home state of Benzinga.

"Today’s announcement brings us closer to achieving our ambitious growth strategy, which starts with winning in Michigan. Our mission is to be one of the world’s best cannabis companies, inspiring people everywhere to feel better, live better and do better," Jeff Radway, SKYMINT's CEO and co-founder told Benzinga. "Personal change. Social change. Political change. We want to be an active player in it all, and we’re committed to being industry trailblazers in and outside of Michigan. This potential for positive change is why I co-founded SKYMINT - to be a part of a rising tide that can lift all boats.”

Tommy Nafso, president and general counsel of 3Fifteen Cannabis, seems pleased to be on the rising boat.

“We couldn’t be more excited to have a partner like SKYMINT to execute our shared vision for aggressive expansion. SKYMINT’s operational efficiencies and meticulous focus on quality, combined with best-in-state cultivation operations and innovative approach to retail, creates the perfect operating environment for continued success,” Nafso said.

See Also: Skymint Opens The Largest Cannabis Dispensary In Coldwater Michigan, Offering 60 Brands And Cool Atmosphere

What This Means For SKYMINT: This acquisition gives SKYMINT the capability to serve nearly 90% of adult Michigan residents in a market valued at $3.2 billion, via its newly expanded retail presence of 27 locations. In other words, the largest cannabis retail footprint across Michigan.

Three additional SKYMINT storefronts are slated to launch in 2021, and 15 more locations are poised to open in 2022.

In addition to shaping the market and bringing jobs to Michigan, Radway said his company has the responsibility to "provide Michiganders increased access to clean, handcrafted, premium products and experiences at the best value, and continue our commitment to uplift the communities we are fortunate to serve. Most importantly, as one of the top private cannabis operators in the country, we have a chance to play a leading role in the Great American Growth Story that is cannabis."

The announcement comes on the heels of Michigan’s record-breaking July 2021 sales, with sales up 52% year over year.

“Merida has already invested deeply in Michigan through 3Fifteen, due to the attractive population dynamics. SKYMINT’S leading vertical position augments 3Fifteen’s leading retail presence,” said Mitch Baruchowitz, CEO of Merida Capital Holdings, who will be joining SKYMINT’s board of directors upon closing of the transaction.

Giving Back To The Community: Since its inception in 2018, SKYMINT has donated more than $500,000 to community organizations and nonprofits in and around Michigan. Among its contributions, SKYMINT supports the Last Prisoner Project, Fair and Equal Michigan, Feeding America West Michigan, Cass Community Social Services and Campaign Zero.

Photo: courtesy of SKYMINT