Skymint buys 3Fifteen Cannabis, secures $ 70 million loan, secures $ 8 million investment

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ANN ARBOR – The wave of consolidations in the Michigan cannabis market continued on Tuesday when SKYMINT announced the acquisition of 3Fifteen Cannabis, the closing of its $ 70 million secured term loan from Tropics LP, a subsidiary of SunStream Bancorp Inc., a joint venture initiative sponsored by Sundial Growers Inc., and its $ 8 million equity investment in Merida Capital Holdings.

On September 1, Canadian company TerrAscend entered Michigan’s rapidly growing cannabis market with the acquisition of Detroit-based Gage Growth in a stock transaction valued at $ 545 million. of dollars.

These transactions further strengthen SKYMINT within the nation’s third largest cannabis market and provide the company with a strong balance sheet to exploit accretive opportunities in and outside Michigan.

With the acquisition of 3Fifteen Cannabis – a Merida Capital holding company with 12 dispensaries currently operating in Michigan – SKYMINT now has the capacity to serve nearly 90 percent of Michigan’s adult residents in a market valued at $ 3.2 billion. SKYMINT’s newly expanded retail presence at 27 locations gives the company the largest cannabis retail footprint across Michigan. No less than three more SKYMINT storefronts are slated to launch in 2021, and 15 more stores are slated to open in 2022.

With this acquisition and financial contribution, SKYMINT’s operational footprint now includes:

  • A combined workforce of 730 employees
  • A combined consumer base of 670,000
  • A combined retail portfolio of 27 pitches totaling 101,000 square feet, with a supplement 18+ in the 2021-2022 pipeline
  • Dominant market share in 4 Key Michigan regions: Grand Rapids (4 locations), Greater Lansing (4 locations), Detroit / Metro Detroit (5 locations) and Ann Arbor (2 locations)
  • Extensive distribution of the SKYMINT ™ brand and partner products; Functionality of SKYMINT stores 60+ brands and more 250 products in all cannabis categories
  • A robust delivery network representing around 10% of total 3Fifteen sales and maintenance 90% of Michigan’s population within 30 minutes of giving birth.
  • Two indoor grow ops totaling 77,000 square feet with a third indoor grow facility – totaling 184,000 square feet – should go live next year
  • A 1000-acre of sustainable sun-grown farm (Michigan’s largest outdoor cannabis farm)

Since its inception in 2018, SKYMINT has donated over $ 500,000 to community and nonprofit organizations in and around Michigan. Among its contributions, SKYMINT proudly supports the Last Prisoner Project, Fair and Equal Michigan, Feeding America West Michigan, Cass Community Social Services and Campaign Zero.

ATB Capital Markets Inc. acted as the exclusive financial advisor to SKYMINT in connection with its acquisition of 3Fifteen Cannabis and as the exclusive placement agent for the debt financing of SunStream.

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