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.
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
If you or someone you know needs to hire one of the Top Cannabis Attorneys in the State of Michigan. Call Komorn Law – Call Now 248-357-2550 before it’s too late.
DISCLAIMER This post may contain re-posted content, opinions, comments, ads, third party posts, outdated information, posts from disgruntled persons, posts from those with agendas, private stuff and general internet BS. Therefore…Before you believe anything on the internet regarding anything – do your research on “Official Government and State Sites”, Call the Michigan State Police, Check the State Attorney General Website and Consult an Attorney – Use Your Brain. You’re on the internet.
If your house or business has been raided for cannabis related crimes by uninvited law enforcement employees. There are new laws that protect you and new laws regarding forfeiture. Here is a quick list of things you should do and should not do.
Say Nothing
Say nothing – The more you say the deeper you go.
Say nothing – They are still going to tear your place apart, destroy and take your stuff anyway.
Say nothing – Let them threaten you all they want.
Say nothing – The police and justice system are not your friends and anything you say will be used against you.
Say nothing – Don’t help them convict you.
Say nothing – Whatever they promise is a lie. They are allowed to lie to you. You are not allowed to lie to them.
Say nothing – They may tell you they know it all. But they are usually fishing. Don’t fill in the blanks.
Say nothing – Ask anyone who has said something and they will most likely tell you they should not have said anything
Hire Experience
Hire an Attorney experienced in the cannabis realm who knows it inside and out ASAP.
If you want to fight for your freedom and future then be prepared to pay. It is usually cheaper in the long run.
If you plea or fall in line with the justice money raking machine. You could be forever in indentured to them.
The system was designed for your to fail at the whim of a few to keep the lights on and staff employed.
Don’t become one of the sheep and follow the herd.
Hire a Lawyer ready and experienced to take it to trial and the supreme court if necessary.
On Wednesday, two residential search warrants for a “large-scale” illegal marijuana grow operation in Richland Township were issued by Michigan State Police and other agencies.
According to Michigan State Police, authorities have seized over 5,400 cannabis plants and more than 100 pounds of processed cannabis.
According to a news release from MSP, the suspects were cultivating and processing marijuana in flagrant violation of the Regulation and Taxation of Marihuana Act of 2018 as well as Michigan’s medical marijuana laws of 2008 and 2016.
The MSP Marijuana and Tobacco Investigation Section, in collaboration with the Ogemaw County Prosecuting Attorney, and with help from the crisis support group of the MSP West Branch Post, carried out the search warrants.
Michigan Gov. Gretchen Whitmer, calling them rushed, recently vetoed 11 bills including three medical cannabis bills, with others related to retirement and tax. The governor did however sign into law six other bills approved by the Legislature.
Two bills that were vetoed: House Bill 5871, which would have amended state law to ease access to medical cannabis products, making them easier to be transferred from one facility to another. HB 5871 would also prohibit a background check of an applicant’s spouse under certain circumstances.
House Bill 5965, on the other hand, would have updated some language and definitions in the state’s Medical Marihuana Facilities Licensing Act, such as the title for the state’s Cannabis Regulatory Agency (CRA).
Another medical cannabis-related bill was vetoed. House Bill 5839, introduced by Rep. Pat Outman (R – Six Lakes), would have prevented the CRA from denying a person a license to sell cannabis based on their spouse’s job, including if their spouse works for the state or federal government.
Michigan Advancereports that Whitmer said in her veto letter to the Legislature on Dec. 22 that the bills “were rushed through a lame duck session and need closer examination.”
The Cost of Cannabis
The price of cannabis in the Michigan adult-use market plunged about 75%, from nearly $400 an ounce to less than $100 over the past two years. That drop in price triggered some industry officials to call for a moratorium on cultivation licenses. MLive reports that 2022 was a good year for customers, on the other hand, who are paying prices much lower than normal this year.
If you or someone you know has been accused of a crime, DUI or Drugged Driving. Call Komorn Law and turn your defense into an offense. Call Now 248-357-2550
DISCLAIMER This post may contain re-posted content, opinions, comments, ads, third party posts, outdated information, posts from disgruntled persons, posts from those with agendas, private stuff and general internet BS. Therefore…Before you believe anything on the internet regarding anything – do your research on “Official Government and State Sites”, Call the Michigan State Police, Check the State Attorney General Website and Consult an Attorney – Use Your Brain. You’re on the internet.
Controversial Michigan marijuana testing lab says potency results are legit. IT HAS PROOF!
Michigan regulators and the state’s largest marijuana safety testing lab are at odds.
When customers purchase marijuana off shelves, the Cannabis Regulatory Agency (CRA) has questioned whether the THC potency results on the label are accurate, at least when Viridis Laboratories has provided the results.
The battle began with a monumental recall issued by the CRA in November 2021 on an estimated $229 million worth of marijuana. The CRA claimed safety test results issued by Viridis Laboratories — the lab that tested all that marijuana — were unreliable.
On Oct. 20, plaintiffs seeking a class-action lawsuit, filed claims against the owners of Jeeter marijuana brand pre-rolls in Los Angeles Superior Court, claiming the brand regularly inflates potency and misleads customers for profits.
“For example, the Baby Jeeter Fire OG Diamond Infused 5-Pack Preroll was listed as having 46% THC on the label,” the lawsuit said. “Independent lab testing showed, however, that the actual THC content of the product was substantially lower, between 23-27% THC.”
Similar claims have been levied against products in Michigan that have been labeled with what some have called impossibly high potencies.
If you or someone you know has been accused of a crime, DUI or Drugged Driving. Call Komorn Law and turn your defense into an offense. Call Now 248-357-2550
DISCLAIMER This post may contain re-posted content, opinions, comments, ads, third party posts, outdated information, posts from disgruntled persons, posts from those with agendas, private stuff and general internet BS. Therefore…Before you believe anything on the internet regarding anything – do your research on “Official Government and State Sites”, Call the Michigan State Police, Check the State Attorney General Website and Consult an Attorney – Use Your Brain. You’re on the internet.
