ANN ARBOR — Michigan-based cannabis company Skymint Inc. has acquired 3Fifteen Cannabis in a deal that broadens the company’s position across the state.
A portfolio company of New York City-based Merida Capital Holdings, 3Fifteen Cannabis has 12 dispensaries in Michigan, including two locations in Grand Rapids and one in Battle Creek. The deal includes Merida Capital Holdings making an $8 million equity investment in Skymint.
Skymint now has 27 locations in Michigan, including four in the Grand Rapids area, with plans to open at least three more by the end of 2021 and 15 in 2022.
In announcing the deal, Skymint said the acquisition allows it to serve 90 percent of the adult cannabis users in Michigan, the third-largest market in the U.S. behind California and Colorado.
“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,” Skymint founder and CEO Jeff Radway said in a statement. “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 3Fifteen Cannabis acquisition comes as merger and acquisition activity heats up within Michigan’s cannabis market. Earlier this month, TerrAscend Inc. announced plans to acquire Michigan retailer Gage Growth Corp. in a $545 million deal, Crain’s Detroit Business reported.
Skymint today also announced a $70 million senior secured term loan from Tropics LP, an affiliate of SunStream Bancorp Inc., which is a venture backed by Sundial Growers Inc. based in Calgary, Canada.
In addition to the retail locations, Skymint operates two indoor cultivation facilities near Lansing and a 1,000-acre outdoor cannabis farm in Lake County.
ATB Capital Markets Inc. served as financial adviser to Skymint on the 3Fifteen Cannabis acquisition and placement agent on the debt financing from SunStream.