Michigan's Skymint Acquired Out Of Receivership

SunStream Bancorp Inc. announced on Friday that a receivership court order is allowing the sale of certain assets of Greenpeak Industries Inc. and certain affiliated entities doing business as Skymint to Skymint Acquisition Co., a newly formed designee entity of Tropics L.P.

Tropics is a limited partnership fully owned by an affiliate of Sunstream, a joint venture sponsored by SNDL Inc. SNDL.

Skymint Acquisition Co. will be a part of the Sunstream USA group of companies, a U.S. platform with one or more independent third-party investors that will be independently managed and governed.

SNDL CEO Zach George praised the move.

"This key milestone in Skymint's ongoing restructuring represents another successful navigation of a complex process," George said. "The Sale Order brings greater certainty, enables management at Skymint Acquisition Co. to focus on serving Michigan consumers and creates tangible U.S. optionality."

The move comes on the heels of the formation of SunStream USA as SunStream Bancorp Inc. was poised to sign restructuring documentation with cannabis company Surterra Holdings, Inc., which is doing business as Parallel.

The Skymint Transaction

On March 3, 2023, Tropics applied for and received the appointment of a receiver of the assets of Skymint. The court-appointed receiver, Trust Street Advisors, LLC, conducted an auction process for the assets of Skymint.

Skymint Acquisition Co. served as the staking horse bidder and was ultimately selected as the successful bidder.

On October 12, 2023, the sale order approving the transfer of the Skymint assets to Skymint Acquisition Co. was approved.

Background

Skymint was forced into a court-appointed receivership after Tropics loaned Skymint's parent company, Green Peak, $70 million in Sept. 2021 to acquire 12 dispensaries. Skymint was unable to meet its new loan obligations.

In June, Tropics, under a new entity to be formed later, offered to acquire the Skymint assets for $109.4 million.

What's Next

The final closing is expected in the first quarter of 2024.

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Photo: Courtesy of Skymint