Michigan Cannabis Firm Skymint Placed Into Receivership By Court Order
MICHIGAN– Skymint, the brand name for Green Peak Innovations Inc., has been placed into receivership by a Michigan judge after the company failed to pay back loans provided by SunStream’s affiliate Tropics LP since March last year. Skymint owes investors at least $135 million, and several investors have sued the company, alleging that it had mismanaged their investments and engaged in fraudulent activity. The Michigan court has appointed an independent third party to oversee the financial management of Skymint, taking control of the company’s financial affairs and assets to protect the interests of creditors. The third party will now decide whether to liquidate the company or enable its reorganization.
The cannabis industry in Michigan has been growing rapidly in recent years, but it is becoming highly saturated with too many businesses competing for a limited customer base across patchwork local regulations. The oversupply of product is exacerbating plummeting prices and diminishing profit margins. At least four other cannabis firms in Michigan are being managed by court-ordered receivers.
Cannabis remains a Schedule 1 drug at the federal level, preventing firms from using federal bankruptcy courts to settle debts and leaving state circuit courts as the only means for financial protection. In addition, rising interest rates will only continue to make capital even pricier for struggling companies.
SunStream, Skymint’s financial supporter, intends to continue providing financial support during the receivership process, with existing employees and management staying in place to provide operational and management services. SunStream believes there will be limited disruption to the business and operations of Skymint during the receivership. The company said that it will provide further updates on its loan interests as the receivership process progresses.
Schwazze Posts $18.5 Million Loss in 2022 Due to Expansion into New Mexico and Acquisitions, But Sees Strong Revenue Growth and Retail Sales
LOS ANGELES-- Schwazze Inc., formerly known as Medicine Man Technologies Inc. and based in Denver, Colorado, has reported a net loss of $18.5 million for the full year of 2022, a significant downturn from its ...
Columbia Care reports $300 million net loss for Q4 2022 and strategic restructuring efforts
LOS ANGELES-- Columbia Care Inc. recently reported its financial results for the fourth quarter and full year ended Dec. 31, 2022, revealing a net loss of $300 million for the quarter, compared to a net ...
Aurora Cannabis Saves $2.6 Million in Interest Payments Through Repurchase of Convertible Senior Notes
LOS ANGELES-- Canadian cannabis company Aurora Cannabis Inc. has announced that it has repurchased approximately $46.6 million (US$34.3 million) worth of its convertible senior notes. The Notes were repurchased at a total cost, including accrued ...