CALGARY,
AB, March 13, 2023 /PRNewswire/
- SunStream Opportunities LP ("SunStream"), an
affiliate of SunStream Bancorp Inc., a joint venture sponsored by
SNDL Inc. (Nasdaq: SNDL) ("SNDL"), has submitted the entry
of a stipulated order (the "Order") by the Circuit Court for
the County of Ingham, Michigan
(the "Court"), for the appointment of a receiver (the
"Receiver") in respect of all of the assets of Green Peak
Industries, and certain affiliates, doing business as SKYMINT
Brands ("Skymint"). On March 3,
2023, the Honorable Judge Draganchuk appointed Trust Street
Advisors, LLC, through its agent, Gene R.
Kohut, as Receiver over all of the assets of
Skymint.
SunStream, through its affiliate Tropics LP, is the sole senior
secured lender to Skymint. The Order follows continuing and
uncured events of defaults under certain senior loan agreements
(the "Senior Loan Agreements") in respect of a series of
debt financings made by Tropics LP to Skymint (the "Loans").
The Order was jointly submitted by Skymint and Tropics LP and
entered by the Court. Skymint's business was deemed to be in
jeopardy, and to protect against unnecessary diminution of value of
the Skymint business, the Receiver was appointed. The Receiver is
authorized and directed by the Court to take immediate possession
and full control of the relevant Skymint assets (the
"Receivership Property"). The receivership process is
designed to facilitate a path to profitability or complete a sale
or restructuring transaction. SunStream will retain its senior lien
position during the receivership process and, in the event of a
sale transaction, will be entitled to receive the proceeds of its
collateral or to credit bid its secured claim to become the new
capital and operating sponsor of a restructured Skymint
business. Pursuant to the Order, Skymint is directed to
cooperate with the Receiver for the orderly transition of the
management of the Receivership Property.
It is contemplated that existing employees and certain key
management will remain in place to provide operational and
management services to the Receiver. SunStream intends to continue
to provide working capital financial support to Skymint throughout
the Receivership process and remains committed to the success of
the Skymint business as a going concern. SunStream believes that
this additional financing will help stabilize Skymint's operations
and maximize the value of the Receivership Property. As each of
SunStream, Skymint and the Receiver are cooperating in the orderly
transition of the Skymint assets, SunStream believes there will be
limited disruption to the business and operations of Skymint during
the receivership.
SunStream will provide further updates in respect of its Loans
interests as the receivership process progresses.
ADVISORS
Honigman LLP is acting as legal for Tropics LP, and Miller Johnson is acting as legal counsel to
Skymint.
ABOUT SUNSTREAM BANCORP INC.
SunStream is a joint venture sponsored by SNDL Inc. that
leverages a strategic financial and operational partnership to
target attractive risk-return opportunities in the cannabis
industry in order to provide exposure to a broad portfolio of
investments. Over the last two years, SunStream has deployed over
US$400 million in loans to State
licensed cannabis operators in the US, which include several
multi-state operators.
ABOUT SNDL INC.
SNDL is a public company whose shares are traded on the Nasdaq
under the symbol "SNDL." SNDL is the largest private-sector liquor
and cannabis retailer in Canada
with retail banners that include Ace Liquor, Wine and Beyond,
Liquor Depot, Value Buds, and Spiritleaf. SNDL is a licensed
cannabis producer and one of the largest vertically integrated
cannabis companies in Canada
specializing in low-cost biomass sourcing, premium indoor
cultivation, product innovation, low-cost manufacturing facilities,
and a cannabis brand portfolio that includes Top Leaf, Contraband,
Citizen Stash, Sundial Cannabis, Palmetto, Bon Jak, Spiritleaf
Selects, Versus Cannabis, Value Buds, Vacay, Grasslands and
Superette. SNDL's investment portfolio seeks to deploy strategic
capital through direct and indirect investments and partnerships
throughout the global cannabis industry. For more information on
SNDL, please go to www.sndl.com.
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SOURCE Sundial Growers Inc.