Michigan-based cannabis company, Skymint has been going through a rough patch lately, to say the least.
Now, the cannabis operator prepares to be auctioned off following its collapse and court-appointed receivership earlier this year.
The auction, scheduled by receiver Gene Kohut of Trust Street Partners, will take place at 11 a.m. ET on August 8, as per an Ingham County Circuit Court order, reported the Green Market Report.
Prospective bidders interested in acquiring Skymint's assets need to submit their bids by July 28, with further details available through the Dragich Law Firm.
See Also: Michigan's Skymint Hits The Auction Block, First Major Cannabis Company To Go To Highest Bidder
Background
The company, which operates under its parent company Green Peak Industries Inc., was forced into receivership earlier this year after failing to repay a substantial debt of $135 million owed to investor Tropics LP, a subsidiary of Calgary-based Sundial Growers Inc. SNDL investment firm SunStream Bancorp Inc.
In an attempt to recoup losses, Skymint's assets will be sold off to the highest bidders, with Tropics LP already making a bid of $109.4 million.
However, industry experts raised concerns that the value of the assets may not align with the original debt, potentially dampening interest from other cannabis competitors.
See Also: Michigan's Embattled Skymint Cannabis Company Catches A Break: Court Orders Return Of 3 Dispensaries
Skymint is entangled in a separate legal battle with Merida Capital Holdings, which had provided financing for Skymint's acquisition of competitor 3Fifteen through an $8 million loan in 2021.
The ongoing court fight with Merida Capital would further complicate the company's situation, although its potential implications for the upcoming auction remain unclear.
Read More: Turbulence At Skymint: CEO, Chairman Ousted Amid Legal Battles And Receivership
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Photo courtesy of Skymint
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