SkyMint, a leading, vertically integrated cannabis company based in Ann Arbor, has announced the acquisition of 3Fifteen Cannabis, a Michigan-based dispensary network. The agreement allows SkyMint to serve nearly 90% of Michigan’s adult residents.
Concurrent with the acquisition, the company entered into a $ 70 million secured term loan with Tropics LP, a subsidiary of SunStream Bancorp, a joint venture initiative sponsored by Sundial Growers Inc. in Calgary, Alberta, Canada. He also closed an $ 8 million equity investment in Merida Capital Holdings in New York.
“SkyMint was founded with the goal of becoming a leader in the cannabis industry while leveraging our leadership position as a positive catalyst for change,” said Jeff Radway, CEO and co-founder of SkyMint.
“With this acquisition of 3Fifteen Cannabis, we have a monumental opportunity and responsibility to truly shape the market for the better, to bring more jobs to our state, to provide Michiganders with increased access to clean products and experiences. , artisanal and upscale at the best value for money, and continuing our commitment to uplift the communities we are fortunate to serve.
The company’s 27 locations across the state give it the largest commercial footprint, with no less than three additional SkyMint storefronts slated to open in 2021 and 15 more in 2022.
The announcement comes after Michigan’s record sales in July. According to an August 2021 report by industry analyst Headset, the state saw a 56% year-over-year increase in July sales, totaling $ 171 million, with recreational products for adults representing $ 128 million. Michigan’s May sales fell only $ 8.5 million compared to Colorado, which is the nation’s second largest market.
“Merida has already invested heavily in Michigan through 3Fifteen, due to the attractive population dynamics. SkyMint’s vertical leadership position reinforces 3Fifteen’s leading retail presence, ”said Mitch Baruchowitz, CEO of Merida Capital Holdings. He will join SkyMint’s board of directors after the transaction closes.
“SkyMint is an award-winning company known for its retail presence, broad manufacturing and cultural capabilities, and community-driven attitude. We look forward to bringing SkyMint to new and growing markets where Merida does business. “
Following the acquisition of 3Fifteen and the financial contribution from Merida and SunsStream, SkyMint now has a combined workforce of 730 people and a combined consumer base of 670,000. It has a dominant market share in Grand Rapids (four locations), Greater Lansing (four locations), Metro Detroit (five locations), and Ann Arbor (two locations).
Besides retail, she also operates two indoor grow facilities totaling 77,000 square feet with a third indoor grow facility – totaling 184,000 square feet – slated to open next year. He also operates a 1,000-acre sustainable solar grow farm, which he says is the state’s largest outdoor cannabis farm.
“SunStream actively deploys cannabis capital and is committed to supporting major US operators. We carefully consider all aspects of a business before forging a capital partnership relationship, with a view to financially sponsoring potential top three or podium operators state by state, ”says Zach George, Partner at SunStream.
“As one of Michigan’s largest vertically integrated operators, SKYMINT is a prime example of a financially strong and strategically positioned cannabis operator, supported by a strong management team capable of handling rapid growth. “