In a key move for Michigan's marijuana business, a company named SunStream Bancorp Inc. is helping organize the sale of important parts of Greenpeak Industries Inc., which does business as Skymint. These parts are being sold to a newly created company named Skymint Acquisition Co., which was carefully set up with the help of another company named Tropics LP. Tropics is entirely owned by an affiliate of SunStream. This deal is a crucial step in reshaping Skymint's business and future operations.
On March 3rd, Tropics, fully enveloped by Sunstream, which is co-sponsored by SNDL Inc. (Nasdaq: SNDL), maneuvered through the legal and financial labyrinth to procure a court-appointed receiver for Skymint's assets from the Circuit Court for Ingham County, Michigan. Trust Street Advisors, LLC, the appointed receiver, efficiently helmed an auction for Skymint's assets, culminating in the selection of Skymint Acquisition Co. as the winning bidder. On October 12th the ensuing Sale Order sanctioned the asset transition to Skymint Acquisition Co., with the final closing projected for the first quarter of 2024. The culmination of this deal hinges on acquiring the nod from regulatory bodies, such as the Cannabis Regulatory Agency of Michigan and several local municipalities.
The agreed asset purchase encompasses the acquisition or assumption of 21 retail leases with dispensaries, boasting an impressive annualized sales figure of approximately $68 million as of September 2023. Additionally, it involves taking on essential cultivation and equipment leases to ensure continuity in operations. A noteworthy aspect of the receivership process involves the intentional rejection of cultivating, equipment, and retail leases, which collectively represented over $12 million of annual fixed obligations, ensuring they are neither purchased nor assumed by Skymint Acquisition Co.
Circling back to September 2021, Tropics extended a loan of $70 million to Skymint, which was secured by a first-priority lien on nearly all assets of Skymint. Despite initial assurances and subsequent acquisitions, like that of the Michigan-based cannabis business 3Fifteen, Skymint found itself ensnared in financial difficulties by March 2022. Efforts to mitigate these fiscal challenges, including a first amendment of the Skymint Loan and an additional $5 million loan from Tropics, did not bear the desired fruits, ultimately paving the path towards the aforementioned transaction.
Guidance through this complex transaction was provided by Honigman LLP, Miller Johnson, and The Dragich Law Firm, acting as legal counsels to Tropics, Skymint, and Trust Street Advisors, LLC, respectively.
SNDL, publicly traded under the symbol "SNDL" on Nasdaq, stands out as the largest private-sector liquor and cannabis retailer in Canada, offering a broad spectrum of products through varied retail banners and housing an expansive portfolio in the cannabis industry. Sunstream, on the other hand, strategically aligns its financial and operational expertise to target fruitful opportunities within the cannabis industry, having deployed approximately $450 million to seven companies from its inception until June 30th, 2023.
The prospective closing of the Skymint Transaction and the anticipated leverage and future performance of Skymint Acquisition Co. remains enveloped in a myriad of forward-looking statements, intertwined with various risk factors and uncertainties. As we collectively navigate through these transitional phases within the cannabis industry, continuous updates and critical analyses will be paramount in understanding the unfolding landscape.
For in-depth information on SNDL, interested parties can visit SNDL.com.
In a succession of consequential meetings, Marine City Commission has embarked on a journey through legal and legislative intricacies concerning the future of marijuana facilities within its jurisdiction. This comes amid extensive discussions, varied opinions, and robust debates, indicating the significance and sensitivity of cannabis legislation in the local governance context.
On October 5th, the Marine City Commission reflected a 6-1 voting pattern, spearheading the first reading of an ordinance tailored to license, site plan, and regulate adult-use marijuana facilities. This progression was not without its fair share of legislative intricacies and debates. Notably, Commissioner Michael Hilferink emerged as a vocal dissenting figure throughout the proceedings.
The journey to this point commenced in June, with the commission instructing City Attorney Robert Davis to conceptualize an actionable ballot initiative to permit dispensaries within Marine City. Davis, in response, articulated legal limitations, noting that a direct ballot initiative from the commission was not viable and later presented an ordinance as an alternative.
Amidst this progression, complexities surrounding regulatory parameters – specifically, setbacks – emerged. Mayor Pro Tem Lisa Hendrick clarified that the setbacks, as per state law, must measure from lot line to lot line, contrary to the building-to-building measurement initially discussed. Subsequent to this, on September 14th, the commission settled for the first reading of the marijuana ordinance in the ensuing meeting.
The legislative tapestry was further complicated by Commissioner Hilferink, who expressed reservations on the ordinance-centric approach, juxtaposed against the initial preference for a ballot initiative. Davis responded by reiterating the commission's directive to opt for either maintaining the existing 2019 ordinance prohibiting facilities, sculpting an ordinance where the city dictates the location and type of recreational facilities, or navigating the turbulent waters of a legally adherent city ballot initiative.
With the evolution from the third to the second option, controversy unfolded regarding the ordinance's formulation and regulatory propositions. Commissioner Rita Roehrig motioned the first reading of the ordinance, which included notably stringent setbacks of 1,000 feet from an assortment of entities, such as residential zones, churches, and child care centers.
However, Hilferink spotlighted procedural disparities, especially considering the previous unretracted motion for a ballot initiative and the commission's obligation to facilitate a discourse on the ordinance's crafting. His grievances extended to transparency and inclusivity in deliberations, critiquing the private submission of comments to Davis rather than fostering an open discussion.
Davis, defending his approach, elucidated that the ordinance had undergone several iterations based on feedback and that it was not formulated in isolation from the commission's inputs. Tensions persisted, with discussions oscillating between the specificities of motions, requested adjustments, and the legitimacy of the setbacks proposed.
Despite the ripples of discontent and rigorous debate, the commission, in a 6-1 vote, approved the first reading of the ordinance, again witnessing Hilferink in dissent. Throughout the discussions, Hilferink accentuated potential violations of voter rights, a lack of clear directive for the ordinance, and apprehensions about de facto zoning out of marijuana facilities given the stringent setbacks.
As discussions simmered down, Hilferink underscored the pervasive issue of transparency and conveyed a sentiment that a majority of Marine City might have leaned towards supporting a vote on the marijuana facilities issue, had it been allowed to materialize. The final consideration and approval of the ordinance are slated for a subsequent meeting, promising further deliberations and potential adjustments.
Celebrating its roots deep in the enchanting soils of delightful memories and high-spirited moments, Craft Cannabis Club lights up the spark of celebration, marking the 1st anniversary of their whimsically wonderful event - Whimsical Wednesday. This enthralling affair is set to create a buzz in the Michigan marijuana community, planting seeds for future gatherings, all while sprouting a rich harvest of fun and fellowship among cannabis enthusiasts and novices alike.
Mark your calendars, dear Michiganders! This high-spirited affair is set to blossom on Wednesday, October 18th, from 5:30 - 10 pm EDT, right at the heart of the vibrant Craft Cannabis Club, located at 29 East Baltimore Avenue, Detroit, MI 48202.
Led by the renowned King Midas Cap Co, known for transforming events into golden memories, this evening promises not just a fusion, but a confluence of fun, flair, and festivity that twirls together like a perfectly rolled joint.
Savor and Elevate with Zenith Foodz: What's a celebration without a banquet of flavors, especially when paired with the exquisite aromas of craft cannabis? Zenith Foodz will cater an array of gourmet specialties designed to tantalize your taste buds and elevate your senses. An exclusive, complimentary tasting awaits every ticket holder, ensuring your palate embarks on a journey as delightful and varied as the strains celebrated at the Craft Cannabis Club.
Groovy Tunes with Amapiano Vibes: Keep the night alive and the vibes high! The Amapiano Vibes DJs are set to steer your rhythmic journey, ensuring your feet perpetually sway, and the night forever stays young and vibrant. Be ready to groove into a musical adventure that harmonizes perfectly with the spirited essence of Whimsical Wednesday.
Lucky Leafs – Raffles & Prizes: Ready to try your luck in with garden of delights? Engage in the raffles and you may just walk away with some fabulous prizes, adding that extra "zing" and zest to your evening of enchantment.
Harvest of Happiness – Swag & Giveaways: Ensure you're among the fortunate to pluck the whimsical giveaways – tokens to remember this magical evening by, long after the last leaf has been smoked and the final note played.
Whether you've meandered with them from the beginning of their journey, or are just now joining the festivity, come and root yourself in a night where every moment is cultivated to delight. Your presence will surely add a unique note to this harmonious blend of celebration and camaraderie.
Tickets are priced at $10 and can be purchased online, ready to be plucked by those eager to be part of an event that promises a bouquet of memories, mingling, and merriment.
Craft Cannabis Club invites you to immerse yourself in an enchanting evening where the air is imbued with whimsy, celebration, and a hearty dose of good old Michigan marijuana magic. RSVP now, and cultivate some unforgettable moments together!
You know you've made it big when your song becomes an anthem for an entire community. Michigan's own singer/songwriter, Sadie Bass, has been soaring to the sky-high stratosphere of the music industry with her hit "Wake N' Bake," backed with a catchy music video that was brought to life with the support of Laingsburg's Local Roots Cannabis and the iconic Michigan-based Redemption Cannabis.
Since the song's release, Bass hasn't just been taking a leisurely walk in the clouds. She's performed a jaw-dropping 56+ shows, spanning 18 states! Now, she's dialing up the heat in Nashville, collaborating with the big names of country music for her forthcoming album.
"Words can't describe how grateful I am to the Liskeys and the Local Roots team. 'Wake N' Bake' isn't just a song – it's a movement! Some folks down South seemed a tad bewildered by it, but music is a language open to interpretation," Bass commented with a chuckle. She even shared a light-hearted anecdote about a fan from Alabama who believed the song was a tribute to sunbathing – now, that's a different kind of baked!
Michigan and Nashville have become her two stomping grounds lately, as she prepares for her album launch and ensuing tour. When asked about her plans, Bass revealed, "There's a lot in the pipeline – from foot-tapping, high-octane numbers to groovy romantic ballads."
In a clear demonstration of how marijuana tax revenues can play a pivotal role in community development, Coldwater's Rotary Park is undergoing significant renovations funded by these funds. Here's how this initiative is helping reshape the local landscape:
Coldwater City Council has channelled its marijuana excise tax revenues to revamp the Rotary Park, which is divided by the Coldwater River on South Lake. In a unanimous decision, the council has decided to proceed with the construction of a new boat launch and marina docks on the park's west side.
The park's current boat ramp is not just inconveniently located on the east side, launching directly into the river channel, but it's also unsafe. Moreover, the entrance to this launch and its parking area near the U.S. 12 bridge pose safety concerns due to poor sightlines.
Fortunately, the revised plan involves shifting this launch to the park's west side, using the entrance to Oak Grover Cemetery's south section. This strategic move not only improves safety but also optimizes the use of the park's expansive terrain.
The park's natural soil structure threw a curveball during the initial phase. With soil borings revealing deep peat deposits and organic silt underneath the topsoil, constructing a stable asphalt parking lot seemed daunting. However, recreational architect Pam Blough proposed a viable solution – constructing parking lots using solid supported concrete or a permeable rock material system, similar to a successful project she handled in Wyoming city.
Moreover, while much of the area along the water is protected wetlands, the region near the U.S. 12 bridge remains an exception. The plan involves establishing a twin concrete launch ramp in this area, while relocating the current canoe/kayak launch across the river.
Aside from these major developments, the larger wooded east side of the park is slated for expansion, promising a host of recreational options – from trails and fishing docks to open spaces with potential for other enhancements.
Further funding avenues are also being explored. With the city having already pledged over $750,000 from marijuana excise tax revenues for the park's development, additional funds from a March 2025 marijuana excise tax payment will be matched with a state grant to finance the east side development.
The story of Rotary Park in Coldwater offers a compelling case for the potential benefits of marijuana tax revenues. With the park's transformation set to be completed by the summer of 2024, Coldwater's residents will soon witness a direct positive impact of these funds on their community. The council's vision and the strategic use of tax revenues set a precedent for other cities to consider similar initiatives, leveraging such resources for the greater good.
Rick Johnson, the former Speaker of the Michigan House, has requested a delay in beginning his prison sentence due to recent heart surgery. Johnson, known for his significant role in the most extensive public corruption case in Michigan over the last three decades, was scheduled to report to a federal prison in Duluth, Minnesota by October 24th.
The 70-year-old ex-Republican representative from LeRoy was convicted for accepting bribes exceeding $110,000 in connection with manipulating the Michigan marijuana industry. This situation was further complicated by personal indiscretions, which highlighted the extent of his misuse of power.
Nicholas Dondzila, Johnson's attorney, filed an appeal to U.S. District Judge Jane Beckering to postpone the commencement of Johnson's 55-month sentence to around December 2nd. This delay would allow Johnson, who recently underwent coronary artery bypass graft surgery, adequate recovery time. "The extended start date ensures Mr. Johnson's health is closely monitored and managed post-surgery," Dondzila mentioned in the official court document. Prosecutors have expressed no opposition to this request.
Johnson's role as the chairman of Michigan's medical marijuana licensing board from May 2017 to April 2019 came under scrutiny when it was discovered that he accepted bribes from prominent figures in the marijuana industry. John Dawood Dalaly, an Oakland County entrepreneur, received a 28-month federal prison sentence related to this case. Meanwhile, lobbyists Brian Pierce and Vince Brown are awaiting their sentencing set for October 18th.
The Duluth prison, positioned near Lake Superior's northern coastline and roughly 700 miles from Lansing, has previously housed notable inmates. Among them are ex-New York Mets player Jerry Koosman, imprisoned for tax evasion, and influential businessman Stuart Levine, who played a role in the conviction of ex-Illinois Governor Rod Blagojevich.
Given Johnson's current health status, his physician, Dr. Brandon Wojcik, has vouched for the 90-day postponement, emphasizing the challenges in maintaining his medical regimen in a prison environment. Dondzila also noted the physical constraints Johnson faces, such as limited mobility, which makes travel from Michigan to Minnesota especially daunting.
Helpful Links Categories Recent News