SKYMINT to acquire 3Fifteen Cannabis while also closing a $ 78 million financing from SunStream Bancorp and Merida Capital, cementing its position as Michigan’s leading cannabis grower, manufacturer, retailer and employer

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ANN ARBOR, me., September 21, 2021 / PRNewswire / – SKYMINT, Michigans leading vertically integrated cannabis company, today announced the acquisition of 3Fifteen Cannabis, the completion of its concurrent $ 70 million Senior Secured Term Loan from Tropics LP, a subsidiary of SunStream Bancorp Inc. (“SunStream”), a joint venture initiative sponsored by Sundial Growers Inc. (Nasdaq: SNDL), and its own $ 8 million Participation by Merida Capital Holdings (“Merida Capital”). These transactions further strengthen SKYMINT’s dominant position in the country’s third largest cannabis market and provide the company with a strong balance sheet to identify growth opportunities inside and outside of Michigan.

With the acquisition of 3Fifteen Cannabis – a Merida Capital portfolio company with 12 pharmacies currently operating everywhere Michigan – SKYMINT can now serve almost 90% of adults Michigan Residents in a market with a value of $ 3.2 billion which has had the freedom to consume cannabis in leisure time since 2019. SKYMINT’s newly expanded retail presence of 27 locations gives the company the largest cannabis retail presence anywhere Michigan. No fewer than three more SKYMINT storefronts are to be opened in 2021, and 15 more locations are to be opened in 2022, which further strengthens SKYMINT’s position Michigans Top vertically integrated cannabis operator.

“SKYMINT was founded with the mission to become a leader in the cannabis industry while using our leadership position as a positive catalyst for change,” said SKYMINT CEO and Co-Founder Jeff Radway. “With this acquisition of 3Fifteen Cannabis, we have a monumental opportunity and responsibility to really shape the market for the better, to bring more jobs to our state, to offer Michigandians better access to clean, handcrafted premium products and experiences at the best price, and we continue to do so Commitment to strengthen the communities we are fortunate to serve. Most importantly, as one of the leading private cannabis operators in the country, we have the chance to play a leading role in the Great American Growth Story about cannabis, “added Radway.

The announcement comes on the heels of Michigans record breaking July 2021 Sales. After a August 2021 Industry Analyst Headset Report, Michigan celebrated a 56% increase over the previous year July 2021 Total sales $ 171 million, with recreational products for adults making up the largest share $ 128 million; and in May 2021, Michigans Cannabis sales were less than $ 8.5 million just surpassed Colorados, which currently holds # 2 in the state’s rankings for national cannabis sales.

“Merida has already invested a lot in Michigan to 3Fifteen, due to the attractive population dynamics. SKYMINT’s leading vertical position expands 3Fifteen’s leading retail presence, “stated Mitch Baruchowitz, CEO of Merida Capital Holdings and will join SKYMINT’s board of directors upon completion of the transaction.” SKYMINT is an award-winning company known for its retail manufacturing presence – and cultivation skills and a community mindset. We look forward to bringing SKYMINT into new growth markets where Merida operates. “

“We are very pleased to have a partner like SKYMINT who is implementing our shared vision of aggressive expansion,” said Tommy Nafso, President and General Counsel of 3Fifteen. “SKYMINT’s operational efficiency and meticulous focus on quality, combined with the best growers and an innovative approach to retail, create the perfect operating environment for lasting success.”

With this acquisition and financial input, SKYMINT’s operational presence now includes:

  • A total workforce of 730 employees
  • A combined consumer base of 670,000
  • A combined retail portfolio of 27 locations totaling 101,000 square feet, with an additional 18+ in the 2021-2022 pipeline
  • Dominant market share in 4 keys Michigan Regions: big rapids, (4 locations), Greater Lansing (4 locations), Detroit / Metro Detroit (5 locations) and Ann Arbor (2 locations)
  • Expanded distribution of SKYMINT ™ brand and partner products; SKYMINT stores offer over 60 brands and more than 250 products from all cannabis categories
  • A robust delivery network that accounts for around 10% of 3Fifteen’s total sales and 90% of Michigan Population within 30 minutes of the delivery range.
  • Two indoor grow facilities with a total of 77,000 square feet and a third indoor grow facility – a total of 184,000 square feet – are scheduled to go online next year
  • A 1,000 hectare sustainable, sun-drenched farm (Michigans largest outdoor cannabis farm)

“The cannabis retail industry is at the forefront of clearing up any misunderstandings, and our acquisition of 3Fifteen Cannabis and ours $ 78 million Funding not only gives SKYMINT greater opportunities and resources to actively participate in this retail development, but also to be at the forefront, “said Radway.

Since its inception in 2018, SKYMINT has more than $ 500k to community organizations and non-profit organizations in and around Michigan. SKYMINT proudly supports the Last Prisoner Project, Fair and Equal Michigan, Feeding America West Michigan, Cass community Social Services and Campaign Zero.

“SunStream is actively investing in cannabis capital and is committed to supporting leading US operators. We scrutinize all aspects of a business before entering into an equity partner relationship to financially sponsor potential top three or podium operators as one of the largest vertically integrated operators in the Michigan“SKYMINT is a great example of a financially sound, strategically positioned cannabis operator supported by a strong management team capable of driving rapid growth,” said SunStream Partner, Zach George.

ATB Capital Markets Inc. acted as exclusive financial advisor to SKYMINT on the acquisition of 3Fifteen Cannabis and as the sole placement agent on the debt financing of SunStream.

ABOUT SKYMINT
Start of business operations in autumn 2018 and headquarters in Ann Arbor, Michigan, SKYMINT is Michigans leading vertically integrated cannabis company and the state’s largest medical and recreational license holder. With two ultra-modern indoor grow facilities and SKYMINT farms, a 1,000 acre greened, sustainable farm, cultivates, processes, markets, distributes and sells a full range of branded cannabis products, including SKYMINT, North Cannabis ™, Jolly Edibleswho have favourited two joints Brand benefiting the Last Prisoner Project and SKYMINT X DNA GENETICS. Just as SKYMINT treats its plants like humans – tending and caring for them by hand and even playing music – every single product is handcrafted to ensure the safest, cleanest and highest quality products at the best value for money. SKYMINTE Products are available in the company’s 27 retail stores. SKYMINT locations have a boutique, gallery-like vibe and an interactive vibe driven by an uninhibited creative flow and inspired by connections between art, culture, community and cannabis. As a supplier of high quality cannabis, SKYMINT has developed a portfolio of the best cannabis brands available for everyday wellbeing, healing, or just for life. Happy people. Happy plants. Visit www.skymint.com

ABOUT MERIDA CAPITAL HOLDINGS
Merida Capital Holdings is a private equity firm that targets fundamental growth drivers that accelerate the rapid development of the cannabis and hemp industries. Merida’s motto, Responsible Investing in the Cannabis Ecosystem, underscores its focus on governance and identifies leading cultivation technologies, products and services related to the development of cannabis and hemp as agricultural products, herbal medicines, ingredients in pharmaceutical formulations and recreational consumers. For more information, please visit www.meridacap.com or follow Merida on Twitter @meridacap.

PRESS CONTACTS
Holly Aubry / [email protected] 646.943.0541
Ally Galanty / [email protected] 313.575.0361

SOURCE SKYMINT

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