LANSING, Mich. (Michigan News Source) – The cannabis company Skymint, which operates in the Lansing area, has recently lost occupancy of its building, the former Summit Sports and Ice Complex in Dimondale.
After nearly three years of owning the former Summit sports facility, the building has been returned to the San Diego based company that Skymint was leasing from, Innovative Industrial Properties Inc. Skymints fall from possession of the building comes just months after it was sued by Tropics LP, claiming that the company owed them more than $127 million.
MORE NEWS: Top 25 ArtPrize Artists Revealed
The approximately 200,000 square foot former Summit building was surrendered to Innovative Industrial Properties Inc. in mid-March according to Gene Kohut of Detroit based Trust Street Advisors in an email to the Lansing State Journal.
Green Peak Industries, the parent company of Skymint, and its subsidiaries owed more than $1 million in rent for the property they were leasing in Dimondale and the landlord “filed a complaint to evict” them, according to the lawsuit.
It also claimed that the group had been “chronically in default of their loan obligations” since “at least March 2022” the lawsuit also said. It also alleged that Green Peak Industries and its subsidiaries lacked sufficient cash to operate their business. The Lansing State Journal reported on a statement provided by the Skymint Brands CEO Jeff Radway about the lawsuit in March.
Skymint “consented to enter a receivership with our primary lender to improve our balance sheet and financial position, while maintaining day-to-day business operations and preserving long-term growth potential,” the company said in an emailed statement. “The court-approved agreement will allow us to focus on our debt obligations to address the financial challenges facing many in Michigan’s cannabis industry, including excess supply, decreasing prices, limited access to capital and the increasing cost of capital.”
The lawsuit also alleged that the company’s sales were declining at a “rapid pace” and provided a consulting firm’s review of Green Peak Industries and its subsidiaries were “burning cash at a rate of $37.5 million per year or $3 million per month,” the lawsuit also said.
Some in the Cannabis industry attribute the falling recreational marijuana prices and company earnings in the state to oversupply.
“Recreational marijuana retail prices have plummeted from $512.05 per ounce of flower in January 2020 to just $86 per ounce of flower in February — effectively eliminating margins for many businesses,” the Green Market Report said.