Dimondale-based cannabis company Green Peak Industries, which operates under the brand name Skymint, has been placed under the control of a receiver after a lender sued the company claiming it owes them more than $127 million.
The March 3 lawsuit, which also names Green Peak Industries subsidiaries District Bay LLC, The District Park LLC and GPIMD Corp., was filed by Canadian-based Tropics LP in Ingham County Circuit Court.
According to the lawsuit, the four companies “have borrowed more than $81 million” from Tropics since September 2021. They have been “chronically in default of their loan obligations” since “at least March 2022,” the lawsuit said.
The lawsuit alleges Green Peak Industries and its subsidiaries “lack sufficient cash to operate their business.”
Court records show an order to appoint a receiver was filed last week.
A message and email left Tuesday morning with Skymint Brands CEO Jeff Radway weren’t immediately returned, however, the company provided a statement.
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 company’s “sales and the wholesale per pound flower price has been declining at a rapid pace,” and a consulting firm’s review of its financials determined Green Peak Industries and its subsidiaries “were burning cash at the rate of $37.5 million per year or $3 million per month,” according to the lawsuit.
Tropics isn’t the only company suing Green Peak Industries.
In a concurrent lawsuit, New York investment firm Merida Capital Holdings filed a complaint in Oakland County Circuit Court alleging that Green Peak misrepresented its financial standing and was mismanaged, according to Crain’s.
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Court Cases
Ingham County, Michigan – Court Record
Case Title: TROPICS LP vs THE DISTRICT PARK LLC et al et al
Case Number: 23-000149-CBJudge:JOYCE DRAGANCHUK
PLAINTIFF: TROPICS LP
DEFENDANT: THE DISTRICT PARK LLC
DEFENDANT: GREEN PEAK INDUSTRIES INC
DEFENDANT: DISTRICT BAY LLC
DEFENDANT: GPIMD CORP
Case Status: OPEN
Disposition: UNDISPOSED
File Date: 03/03/2023
Case Events
- 8-03/09/2023NOTICE OF APPEARANCE AND REQUEST FOR SERVICE OF PAPERS W/ PS
- 7-03/07/2023ACCEPTANCE OF RECEIVERSHIP APPOINTMENT (RECEIVERSHIP ESTATE)
- 6-03/03/2023C30 ELECTRONIC SYSTEM FEE RECEIPT: 505386 DATE: 03/03/2023
- 5-03/03/2023NOTICE OF ASSIGNMENT TO THE BUSINESS COURT
- 4-03/03/2023NOTICE OF ASSIGNMENT TO THE BUSINESS COURT
- 3-03/03/2023STIPULATION AND ORDER APPOINTING RECEIVER
- 2-03/03/2023SUMMONS ISSUED
- 1-03/03/2023COMPLAINT FILED RECEIPT: 505386 DATE: 03/03/2023
Oakland County Court
Case Number
2023-199132-CB
Entitlement GREEN SKIES HEALING TREE vs. GREEN PEAK INDUSTRIES INC
Judge Name MICHAEL WARREN
Case E-Filed YES Case Filed
03/06/2023 Case Disposed
00/00/0000
| Date | Code | Desc |
|---|---|---|
| 03/09/2023 | REQ | REQUEST FILED ADD RECVR |
| 03/09/2023 | APP | APPEARANCE FILED /NTC/RCVR |
| 03/09/2023 | NTC | NOTICE FILED RCVRSHOP/STAY |
| 03/09/2023 | POS | AFFIDAVIT/PROOF OF SERVICE FILED |
| 03/09/2023 | MPS | MIFILE PROOF OF SERVICE FILED |
| 03/09/2023 | POS | AFFIDAVIT/PROOF OF SERVICE FILED |
| 03/09/2023 | APP | APPEARANCE FILED /GREEN PEAK/DIST BAY/DIST PARK/GPPIMD |
| 03/09/2023 | MPS | MIFILE PROOF OF SERVICE FILED |
| 03/07/2023 | MPS | MIFILE PROOF OF SERVICE FILED |
| 03/07/2023 | APP | APPEARANCE FILED /PLF |
| 03/06/2023 | SI | SUMMONS ISSUED |
| 03/06/2023 | SI | SUMMONS ISSUED |
| 03/06/2023 | C | COMPLAINT FILED /JD/NTC ASSIGN BUS CT |
| 03/06/2023 | SI | SUMMONS ISSUED |
| 03/06/2023 | SI | SUMMONS ISSUED |
| 03/06/2023 | SI | SUMMONS ISSUED |
| 03/06/2023 | SI | SUMMONS ISSUED |
| 03/06/2023 | SI | SUMMONS ISSUED |
Showing 1 to 18 of 18 records
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