The fight isn’t over for Michigan cannabis operator 3Fifteen Cannabis, which was supposed to have been acquired by financially troubled Skymint.
Then Skymint became mired in its financial problems, and the owners of 3Fifteen sought to terminate the deal and have their assets returned to them. But even though Skymint hadn’t actually paid for the acquisition, a judge told 3Fifteen no.
Mitch Baruchowitz of Merida Capital, an investor in 3Fifteen, told Green Market Report that his group’s appeal of the judge’s initial decision against them has now been granted. Because of that, that the receivership status is now frozen for four months and on hold until 3 Fifteen’s appeal can be heard, he said.
Background
In September 2021. Skymint agreed to acquire 3Fifteen, which ha 12 dispensaries in Michigan. That deal would have given Skymint a dominant role in the state’s new adult-use market.
In April 2022, Skymint announced it had closed on the deal with 3Fifteen, and Skymint appointed Baruchowitz to the company’s board of directors.
Less than a year later however, Skymint was drowning in debt and burning through $3 million in cash per month. The company couldn’t declare bankruptcy because of the federal illegality of cannabis, and instead