Aug. 8 has been chosen for when vertically integrated cannabis chain Skymint will be sold off for parts at auction, putting a final touch on one of the most dramatic cannabis industry collapses to date in Michigan’s struggling marijuana market.
The embattled company’s time was up earlier this year, after it first was put into court-appointed receivership in March, and then in May when it was announced the business couldn’t be salvaged and its assets would be sold to the highest bidders.
The death blow comes after Skymint, which operates primarily under its parent company name of Green Peak Industries Inc., was unable to repay $135 million it owed to investor Tropics LP, which was the debt that sent the company tumbling into receivership after Tropics sued.
According to a notice published this week by the Detroit-based Dragich Law Firm, the receiver – Trust Street Partners’ Gene Kohut – has scheduled an auction for 11 a.m. Eastern time on Aug. 8, pursuant to an order from the Ingham County Circuit Court.
Anyone who wishes to put in a bid for Skymint’s assets must do so by July 28, according to an approval order from the court. Any potential bidders can contact the Dragich Law Firm.
But it’s unclear if anyone aside from the debtor itself – Tropics LP – has any interest in buying the assets.
Tropics LP has offered a $109.4 million bid already, Crain’s Detroit reported in May. And others in the industry noted that Skymint’s assets aren’t even valued at the original $127 million note that Tropics lent to Skymint, making them quite unattractive to cannabis competitors.
Tropics even had to lend Skymint more than $5 million to continue operations.
Skymint also has simultaneously been fending off another court battle with Merida Capital, which helped finance Skymint’s acquisition of competitor 3Fifteen by loaning it $8 million.
It’s unclear whether that court fight may have implications for the coming auction.