SkyMint, a leading vertically integrated cannabis company based in Ann Arbor, announced the acquisition of 3Fifteen Cannabis, a Michigan-based network of dispensaries. The deal provides SkyMint with the capability to serve nearly 90 percent of Michigan’s adult residents.
Alongside the acquisition, the company closed a $70 million senior secured term loan from Tropics LP, an affiliate of SunStream Bancorp, a joint venture initiative sponsored by Sundial Growers Inc. in Calgary, Alberta, Canada. It also closed an $8 million equity investment from Merida Capital Holdings in New York City.
“SkyMint was founded on a mission to become a leader in the cannabis industry while leveraging our leadership position as a positive catalyst for change,” says 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, bring more jobs to our state, 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.”
The company’s 27 locations across the state gives it the largest retail footprint, with no less than three additional SkyMint storefronts set to open in 2021, and an additional 15 in 2022.
The announcement comes after Michigan’s record-breaking July sales. According to an August 2021 report from industry analyst Headset, the state saw a 56 percent year-over-year increase in July sales, totaling $171 million, with adult recreational products comprising of $128 million. In May, Michigan sales fell only $8.5 million short of Colorado, which is the second largest market in the country.
“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,” says Mitch Baruchowitz, CEO of Merida Capital Holdings. He will join the SkyMint Board of Directors after the completion of the transaction.
“SkyMint is an award-winning company known for its retail presence, its vast manufacturing and cultivation capabilities, and a community-minded attitude. We look forward to bringing SkyMint into new growth markets where Merida has operations.”
After the acquisition of 3Fifteen and the financial input from Merida and SunsStream, SkyMint now has a combined workforce of 730 people and a combined consumer base of 670,000. It holds a dominant market share in Grand Rapids (four locations), greater Lansing (four locations), metro Detroit (five locations), and Ann Arbor (two locations).
Aside from retail, it also operates two indoor cultivation facilities totaling 77,000 square feet with a third indoor cultivation facility — totaling 184,000 square feet — due to open next year. It also operates a 1,000-acre sustainable sun grown farm, which it claims is the largest outdoor cannabis farm in the state.
“SunStream is actively deploying capital in the cannabis space and is committed to supporting premier U.S. operators. We look acutely at all aspects of a company prior to forging a capital partner relationship, with a view to financially sponsoring prospective top-three or podium operators on a state-by-state basis,” says Zach George, a partner at SunStream.
“As one of the largest vertically integrated operators in Michigan, SKYMINT is an excellent example of a financially sound, strategically positioned cannabis operator backed by a strong management team capable of navigating rapid growth.”
