Michigan's Embattled Skymint Cannabis Company Catches A Break: Court Orders Return Of 3 Dispensaries

Michigan’s Skymint reopened three dispensary locations following a court ruling that settled a dispute between the company and an entity it acquired last year and after been forced into a court-appointed receivership and being sued by Canadian investment firm Tropics LP.

What happened: The lawsuit alleged that Skymint had burned through $3 million in cash per month and generated only $110 million in revenue in 2022, $153 million below its forecast of $263 million in sales for the year, reported Crain's Detroit. Then, a second lawsuit was filed concurrently in Oakland County Circuit Court by New York-based cannabis investment company Merida Capital Holdings against Green Peak (Skymint’s parent company) and its executives alleging misrepresentation of its financials and mismanagement. Tropics, LP, a subsidiary of Calgary-based Sundial Growers Inc.’s SNDL, loaned Skymint $70 million towards the acquisition of competitor 3Fifteen Cannabis and its 12  cannabis shops in Detroit, Grand Rapids, Ann Arbor, Flint and elsewhere. Merida, a majority shareholder in 3Fifteen, also put in $8 million toward the purchase. 

3Fifteen, however, challenged the leadership of the company and retook control of several stores acquired in the deal, including dispensaries in Hamtramck, Grand Rapids, Camden and two in Battle Creek, according to court records.

Now, an Ingham County Circuit Court judge overseeing the suit ruled that 3Fifteen must cede control of those stores back to Skymint, determining that representatives from 3Fifteen violated the court's receivership order. 3Fifteen must also return nearly $495,000 in funds removed from 3Fifteen bank accounts and cede access to those accounts back to Skymint employees.

"We are excited that we have reopened our storefronts in Grand Rapids, Camden and Battle Creek," Skymint said in an email to Crain's. "We appreciate the court's careful consideration in this case, which has restored full operating authority over these locations to Skymint. Our focus now is on continuing to provide customers throughout the state with the exceptional products and service they have come to expect from Skymint."

Photo courtesy of Skymint