ANN ARBOR – The wave of consolidations in the Michigan cannabis market continued Tuesday when SKYMINT announced the acquisition of 3Fifteen Cannabis, the closing of its concurrent $70 million Senior Secured Term Loan from Tropics LP, an affiliate of SunStream Bancorp Inc., a joint venture initiative sponsored by Sundial Growers Inc., and its $8 million equity investment from Merida Capital Holdings.
On Sept. 1, Canadian-based TerrAscend entered Michigan’s rapidly growing cannabis market through the acquisition of Detroit-based Gage Growth in an all-stock deal reportedly worth $545 million.
These transactions further strengthen SKYMINT within the nation’s third largest cannabis market and provide the Company with a strong balance sheet to execute on accretive opportunities in and outside of Michigan.
With the acquisition of 3Fifteen Cannabis – a portfolio company of Merida Capital with 12 dispensaries currently in operation throughout Michigan – SKYMINT now has the capability to serve nearly 90 percent of adult Michigan residents in a market valued at $3.2B. SKYMINT’s newly expanded retail presence of 27 locations gives the Company the largest cannabis retail footprint across Michigan. No less than three additional SKYMINT storefronts are slated to launch in 2021, and 15 more locations are poised to open in 2022.
With this acquisition and financial input, 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 locations totaling 101,000 square feet, with an additional 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)
- Expanded distribution of SKYMINT™ brand and partner products; SKYMINT stores feature 60+ brands and more than 250 products across all cannabis categories
- A robust delivery network representing approximately 10% of 3Fifteen’s total sales and servicing 90% of the Michigan population within 30 minutes of delivery range.
- Two indoor cultivation facilities totaling 77,000 square feet with a third indoor cultivation facility – totaling 184,000 square feet – due to come online next year
- A 1,000-acre sustainable, sungrown farm (Michigan’s largest outdoor cannabis farm)
Since its inception in 2018, SKYMINT has donated more than $500k to community organizations and nonprofits 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 on its acquisition of 3Fifteen Cannabis and as the sole placement agent on the debt financing from SunStream.