Skymint Archives - Green Market Report

StaffMay 17, 2023
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4min6230

The Daily Hit is a recap of the top financial news stories for May 17, 2023.

On the Site

Curaleaf Q1 Revenue Exceeds Expectations

Curaleaf Holdings Inc. (CSE: CURA) (OTCQX: CURLF) reported net revenue of $336.5 million for the first quarter of 2023, up $40.5 million from the first quarter of 2022. This beat revenue expectations by nearly $5 million. Read more here.

Pelorus Breaks Credit Grass Ceiling with A Rated Notes

Cannabis debt typically has been given low ratings, if receiving a rating at all. This week, cannabis commercial real estate lender Pelorus Capital Group announced that notes issued by its private mortgage real estate investment trust subsidiary, the Pelorus Fund REIT, received an A rating by Egan-Jones Rating Company – the highest rating issued to date in the cannabis industry. Read more here.

TILT Holdings Secures $4.5M to Restructure Capital Amid Payment Challenges

Tilt Holdings Inc. (NEO: TILT) (OTCQX: TLLTF) closed an offering of up to $4.5 million in senior secured promissory notes, referred to as a bridge loan, on Monday. The company says the move allows it to access up to $4 million in funding from its existing note holders. Read more here.

Hemp Naturals Agrees to $50k Settlement with SEC for Securities Violations

According to the agreement, Hemp Naturals repeatedly failed to file required forms with the SEC between July 8, 2020, and July 6, 2021. During that time, the company sold 534 million shares and raised $2.4 million despite repeatedly lowering its stock price, in contravention with SEC rules. Read more here.

Troubled Skymint Loses Infamous Sports Complex in Michigan

Embattled Skymint invested heavily last year to retrofit the former Summit Sports and Ice Complex near Lansing into a massive marijuana grow and processing operation. The expansion was supposed to double its marijuana production capabilities, but Skymint never completed the build-out. Read more here.

In Other News

Oregon

Oregon Gov. Tina Kotek found out in April that Secretary of State Shemia Fagan had a consulting contract in connection with a cannabis business, according to Kotek’s spokesperson Elisabeth Shepard. Read more here.

Rhode Island

Gov. Dan McKee on Wednesday named his three nominees to a new Cannabis Control Commission, which will have the authority to regulate the state’s marijuana industry moving forward, including issuing new licenses for additional recreational pot stores. The issuance of up to 33 new license has been stalled by delays in the appointments. Read more here.


StaffMay 15, 2023
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6min5850

The Daily Hit is a recap of the top financial news stories for May 15, 2023.

On the Site

Green Thumb Industries Facing 10 Federal Complaints from Teamsters

Although the nearly two-week strike at several Green Thumb Industries (CSE: GTII) (OTCQX: GTBIF) facilities by unionized workers has concluded, the Illinois-based multistate operator is still negotiating with the International Brotherhood of Teamsters over employment terms for many of its workers. Read more here.

Cannabis Companies Skymint, 3Fifteen Battle in Receivership

Lawyers entangled in the court-ordered receivership of Lansing marijuana giant Skymint continue to battle over the company’s finances. The alleged trouble stems from Skymint‘s $78 million acquisition of Birmingham-based competitor 3Fifteen Cannabis in April 2022. Read more here.

Related: SNDL Sales Dip in First Quarter

Columbia Care Sees Revenue Uptick Despite Retail Closures

Columbia Care Inc. (CSE: CCHW) (OTCQX: CCHWF) reported its top-line revenue for the first quarter grew 1% from the same quarter in 2022 to $124.5 million. The growth beat expectations by $1.3 million and was largely driven by strong performance in the East Coast markets, particularly New Jersey, Virginia, and West Virginia. Read more here.

Tilt Pledges ‘Frugality as a Core Value’ After $5M Loss

Tilt Holdings (NEO: TILT) (OTCQX: TLLTF) lost $4.9 million for its first quarter in 2023, a vast improvement from the final three months of 2022, when it lost a whopping $73 million. But that’s only one step in the right direction, intimated the newly minted interim CEO Tim Conder. Read more here.

TPCO Sales Down But So Are Losses

TPCO Holding Corp. (NEO: GRAM) (OTCQX: GRAMF), which does business as The Parent Company, posted a $16.5 million loss for the first quarter of 2023, a solid improvement from the $735 million it managed to burn through in the 24 months before that. Read more here.

More Earnings:

Auxly Cut Expenses, Achieves Positive Adjusted EBITDA in Q1
Enveric to Cut Costs, Cannabis Operations
Fire & Flower Revenues Rise Slightly in First Quarter
4Front Ventures Provides Rosy Outlook as it Expands Illinois Operations
Goodness Growth Ekes Past Expectations
Restructuring, Strategy Rework Fuel IM Cannabis’ Q1 Profit Boost
Safe Harbor Offsets $1.4M Loss with $1B Deposit Capacity Increase

In Other News

Pelorus Capital Group

Pelorus Capital Group, a provider of commercial real estate loans for the regulated cannabis sector, announced that $50 million in aggregate principal amount of 7% senior secured notes due Sept. 26, 2026, issued by its private mortgage real estate investment trust subsidiary, the Pelorus Fund REIT LLC, have been assigned an A rating by Egan-Jones Rating Company – the highest rating issued to date in the cannabis industry. Read more here.

CEA Industries

CEA Industries Inc. (Nasdaq: CEAD, CEADW) more than doubled its revenue in the first quarter of 2023 to $4.7 million compared to $1.7 million for the same period in 2022. The increase was primarily attributed to improvements in the company’s supply chain and deployment of project work as it worked through delayed projects from prior periods. Read more here.


Dustin WalshMay 12, 2023

10min10320

This story was republished with permission from Crain’s Detroit and written by Dustin Walsh.

Lawyers entangled in the court-ordered receivership of Lansing marijuana giant Skymint continue to battle over the company’s finances.

The alleged trouble stems from Skymint‘s $78 million acquisition of Birmingham-based competitor 3Fifteen Cannabis in April 2022.

Skymint, which primarily operates under the parent company of Green Peak Innovations Inc., owes more than $127 million to Canadian investment firm Tropics LP tied to the acquisition. Tropics has since come on as the primary funder of operations as Skymint works through receivership. But the minority lender in the acquisition, New York-based cannabis investment firm Merida Capital Holdings and a majority shareholder in 3Fifteen, is challenging whether its stores should be involved in the receivership at all.

Its lawyers have sought on several occasions to disjoin the company from the court-order receivership, despite the acquisition closing more than a year ago.

In the days prior to Skymint entering receivership, 3Fifteen Cannabis retook control of several stores acquired by Skymint, including dispensaries in Hamtramck, Grand Rapids, Camden and two in Battle Creek, according to court records.

But the circuit court judge in Ingham County ordered 3Fifteen to cede control back to Skymint, according to court records, as well as return control of bank accounts with nearly $500,000 in funds to Skymint.

Lawyers for Skymint and the receiver argued in a court hearing last week that 3Fifteen had not returned the bank accounts and should be held in contempt of court. 3Fifteen’s lawyers argued the order should be reversed and control of those stores and accounts should remain in 3Fifteen’s control.

“(The March 29 order) … required a return to the status quo, required return of money that was improperly taken, and so if you were to enter a stay of that March 29 order, it would reignite the chaos and the smash-and-grab tactics that we sought this court’s intervention and protection for,” David Dragich, partner at The Dragich Law Firm PLLC and attorney for the receiver in the case, argued in the hearing to the judge.

According to arguments in the hearing, 3Fifteen had used more than $600,000 from the accounts in question at Live Life Credit Union to pay leases and payments linked to the acquisition.

“What we want from the stay pending appeal is these locations to be shut down,” Max Newman, partner at law firm Butzel Long and attorney for 3Fifteen, argued in the hearing. “Smash-and-grab is what the other side is doing, and particularly how we see Tropics and Skymint. These operations under Skymint’s management, and I’d call it mismanagement, are losing hundreds of thousands of dollars a month …”

3Fifteen and Merida accused Skymint’s former CEO Jeff Radway of several misdeeds, including using the company as his personal piggy bank in several extramarital affairs. Radway left the company on an “indefinite leave of absence” on April 7, according to an email to employees from Jeff Donahue, Skymint’s executive vice president and general counsel, that was obtained by Crain’s.

The Ingham County judge, however, did not buy into 3Fifteen’s claims that it should be separated from the receivership or authorize an appeal in another court and refused to reverse the March 29 order, according to the transcript from the May 3 hearing.

“The March 29 order restored the status quo and, again, 3Ffiteen isn’t asking for a stay that would just stop this case from proceeding, they’re asking to reverse parts of the March 29 order,” Judge Joyce Draganchuk said in the hearing. “So I think in balancing harms, there would be greater harm in granting the stay than in not … in my view, businesses should not be thrown into upheaval and the order appointing a receiver and the March 29 order stabilizes the businesses and allows them to continue in smooth operations.”

And with that, the judge denied 3Fifteen’s request. The judge also denied 3Fifteen’s request to enter arbitration over the purchase agreement with Skymint.

The plaintiff and defendant lawyers also argued over the $600,000 in funds 3Fifteen took from accounts to pay itself and expenses for the operations it believes it controls.

3Fifteen’s attorneys argued those expenses needed to be paid and the receiver would have done it anyway. The receiver’s attorney disagreed.

“It’s like robbing a convenience store and saying, ‘Well, we paid the wages of the employee because we gave the guy a $100 on the way out the door,'” Dragich said. “You don’t get to make that decision. You’ve taken the money from the receivership estate and all we’re asking for, again, is that those funds be returned and they be returned promptly.”

3Fifteen’s lawyer, Newman, argued the use of those funds was done because the order appointing a receiver was “ambiguous, vague, overwrought, verbose.”

Judge Draganchuck reminded Newman her signature was on that order.

“I know but it’s got typographical errors in it, misuse of apostrophes, literally repetition of the same phrase twice in a row that suggests that nobody proofread that order and the reason nobody proofread that order is, quite frankly, it’s unreadable,” Newman replied.

The judge ordered 3Fifteen to repay the more than $600,000 to Skymint, including the repayment of $375,000 within 24 hours of the May 3 hearing and the remainder by May 17.

The judge, however, declined to hold 3Fifteen in contempt of court over the ordeal.


StaffApril 3, 2023
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4min7860

The Daily Hit is a recap of the top financial news stories for April 3, 2023.

On the Site

New York Adds Another 99 Cannabis Retailers, Bringing Total Licensed to 165

New York marijuana regulators on Monday awarded another 99 conditional adult use retail dispensary permits to applicants, bringing the total of marijuana shop permits awarded to 165. The winners included 13 applicants from Brooklyn, Central New York, Western New York, and the Mid-Hudson regions, which had previously been blocked by an injunction. Read more here.

Massachusetts Cannabis Prices, Profits Hit Record Low

Prices for both wholesale and retail level cannabis in Massachusetts are at their lowest levels in five years, and the trend has put a financial hurt on businesses. In January, the average retail price per gram of cannabis flower hit $7.12, NBC Boston reported while citing state data. That’s down from more than the $14 per gram price in the final months of 2018. Read more here.

Goodness Growth Earnings Benefit from Arizona Exit, Minnesota Market Changes

Goodness Growth Holdings Inc. (CSE: GDNS) (OTCQX: GDNSF), saw revenue climb 39% in the fourth quarter, which the company’s interim CEO attributes in part to “removal of the negative performance drag” from the former Arizona cultivation facility. Read more here.

Embattled Skymint Regains Control of 3 Michigan Dispensaries After Court Order

Embattled cannabis firm Skymint reopened three dispensary locations last weekend after a court ruling settled a squabble between the company and an entity it acquired last year. Read more here.

POSaBIT Buys Banking Compliance Firm for $7.5 Million

Legal cannabis point-of-sale provider POSaBIT Systems Corp. (CSE: PBIT) has acquired assets from bank compliance firm Hypur Inc. for up to $7.5 million in cash and equity. Read more here.

In Other News

Rubicon Organics

In the fourth quarter of 2022, Rubicon Organics (TSXV: ROMJ) (OTCQX: ROMJF) earned $11 million of net revenue, an increase of 5% when compared to the third quarter of 2022. Net revenue was relatively flat from the third quarter as the company had certain facility maintenance and downtime which impacted crop yields and availability of supply in the autumn. Read more here.

Christina Lake Cannabis Corp.

Christina Lake Cannabis Corp. (CSE: CLC) (OTCQB: CLCFF) (FRANKFURT: CLB) reported revenue for 2022 grew 177% to $10.1 million from $3.6 million in the prior year. Revenue growth was driven by the growing demand for premium distillate, extended product offerings, and expanding customer base. Read more here.


StaffMarch 13, 2023
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4min8920

The Daily Hit is a recap of the top financial news stories for March 13, 2023.

On the Site

Silicon Valley Bank Failure Could Have Tangential Effects for Cannabis, Experts Say

The surprise failure on Friday of Silicon Valley Bank – the biggest U.S. bank to fail since 2008 – has some marijuana finance experts warning that there are almost certain to be ripple effects for cannabis companies, even if the cannabis sector doesn’t take a direct hit from SVB going under. Read more here.

Glass House Brands 2022 Sales Improve as California Flower Prices Rise

California-based single-state operator Glass House Brands (OTC:GLASF) has positioned itself to benefit from rising flower prices in the state as more competition bounces out of the cultivation business. Read more here.

Michigan Court Approves Skymint Order as Industry Braces for Receiverships

A Michigan court officially approved an order that appoints an independent third party to oversee the financial management of Skymint, the brand name for Green Peak Innovations Inc. Skymint, which owes its investors at least $135 million and is behind on rent obligations and back taxes, was placed into receivership by a judge last week. Read more here.

Oregon Cannabis Prices Bottoming Out Again

Oregon marijuana prices have hit their lowest point in the history of the state’s legal market, at $4 a gram for average recreational customers. That’s down 16% from last year, according to an annual report from the Oregon Liquor and Cannabis Commission delivered to the state legislature last month. Read more here.

Unrivaled Brands, People’s California Settle All Litigation

A messy case of legal fingerpointing between two California companies has apparently ended amicably, with both Unrivaled Brands and People’s California agreeing to a settlement. Although the terms of the settlement were not immediately disclosed, the end result is that both companies will “request a stay of all pending litigation.” Read more here.

In Other News

High Fusion

High Fusion Inc. (CSE: FUZN) closed the sale of its property in Pueblo, Colorado, with funds received on March 10, 2023, to be applied to the repayment of the 2020 debentures. The Property was originally purchased by the company in 2014 and leased to Palo Verde LLC, a licensed cannabis business under the Colorado Marijuana Enforcement Division. In March 2021, High Fusion was approved for the transfer of the MED license, and Palo Verde LLC was purchased at that time. However due to a lack of funding, the Palo Verde operation had minimal activity during 2022, and both the medical and adult use licenses have not been renewed. Read more here.

Heritage Cannabis

Heritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF) met the regulatory requirements and has achieved approval from the Brazil Health Authority (ANVISA) to import its first formulated CBD product into Brazil. Heritage also achieved stability on two additional products that are awaiting final approval. Read more here.


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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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