ANN ARBOR, Mich., Sept. 21, 2021 /PRNewswire/ -- SKYMINT,
Michigan's leading vertically
integrated cannabis company, today 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. ("SunStream"), a
joint venture initiative sponsored by Sundial Growers Inc. (Nasdaq:
SNDL), and its $8 million equity
investment from Merida Capital Holdings ("Merida Capital").
These transactions further strengthen SKYMINT's dominant position
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% of adult
Michigan residents in a market
valued at $3.2B that has embraced the
freedom to consume cannabis recreationally since 2019. 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, further fortifying SKYMINT's
position as Michigan's top
vertically integrated cannabis operator.
"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," said SKYMINT CEO and co-founder
Jeff Radway. "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. Most importantly, as one of the top
private cannabis operators in the country, we have a chance to play
a leading role in the Great American Growth Story that is
cannabis," added Radway.
The announcement comes on the heels of Michigan's record-breaking July 2021 sales. According to an August 2021 report from industry analyst Headset,
Michigan celebrated a 56%
year-over-year increase in July 2021
sales totaling $171M, with adult
recreational products comprising the largest share of $128M; and in May
2021, Michigan's cannabis
sales were less than $8.5M short of
surpassing Colorado's, which
presently holds the No. 2 state ranking for national cannabis
sales.
"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," explained Mitch
Baruchowitz, CEO of Merida Capital Holdings and will be joining
SKYMINT's board of directors upon closing 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."
"We couldn't be more excited to have a partner like SKYMINT to
execute our shared vision for aggressive expansion," said
Tommy Nafso, President and
General Counsel of 3Fifteen. "SKYMINT's operational efficiencies
and meticulous focus on quality, combined with best-in-state
cultivation operations and innovative approach to retail, creates
the perfect operating environment for continued success."
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)
"Cannabis retail is on the frontlines of breaking down
misconceptions, and our acquisition of 3Fifteen Cannabis and our
$78M financing not only gives SKYMINT
greater avenues and resources to actively participate in this
retail evolution but to also be at the forefront," stated
Radway.
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.
"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. 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," said SunStream partner, Zach George.
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.
ABOUT SKYMINT
Beginning operations in Fall 2018 and
headquartered in Ann Arbor,
Michigan, SKYMINT is Michigan's leading vertically integrated
cannabis company and the state's largest medical and recreational
license holder. With two state-of-the-art indoor grow facilities as
well as SKYMINT Farms™, a 1000-acre sungrown,
sustainable farm, the Company cultivates, processes, markets,
distributes and sells a full range of branded cannabis products,
including SKYMINT™, North Cannabis™, Jolly
Edibles™, the Two Joints™ brand, which
benefits the Last Prisoner Project, and SKYMINT X DNA
GENETICS™. Just as SKYMINT treats its plants like
people - tending to and caring for them by hand, and even playing
them music - each and every product is handcrafted to ensure the
safest, cleanest, highest quality products at the best value.
SKYMINT™ products can be found at the Company's 27
retail stores. SKYMINT locations possess a boutique
gallery-like vibe and interactive atmosphere, defined by an
uninhibited creative flow and inspired by connections between art,
culture, community, and cannabis. As purveyors of premium-crafted
cannabis, SKYMINT™ has developed a portfolio of the
finest cannabis brands available for daily wellness, healing, or
just getting high on life. Happy People. Happy Plants. Visit
www.skymint.com
ABOUT MERIDA CAPITAL HOLDINGS
Merida Capital Holdings
is a private equity firm targeting fundamental growth drivers which
accelerate the rapid development of the cannabis and hemp
industries. Merida's motto, Responsible Investing in the Cannabis
Ecosystem, highlights its focus on governance while identifying
leading cultivation technologies, products and services associated
with the evolution of cannabis and hemp as agricultural products,
plant-based medicines, constituents in pharmaceutical formulations
and recreational consumer products. For more information, please
visit www.meridacap.com or follow Merida on twitter @meridacap.
PRESS CONTACTS
Holly
Aubry / Haubry@humannaturepr.com 646.943.0541
Ally Galanty /
Ally@humannaturepr.com 313.575.0361
View original
content:https://www.prnewswire.com/news-releases/skymint-acquires-3fifteen-cannabis-and-completes-concurrent-78-million-financing-from-sunstream-bancorp-and-merida-capital-solidifying-its-position-as-michigans-top-cannabis-cultivator-manufacturer-retailer-and-employer-301381672.html
SOURCE SKYMINT