Florida-based medical cannabis company Trulieve Cannabis Corp. filed a civil lawsuit last week against an Ohio medical cannabis company seeking payment of loans and other fees, Dayton Daily News reports. The lawsuit against Harvest of Ohio, which also operates Harvest Grows, is attempting to recover $23.8 million in debt from capital expenses, operating expenses, cash funding, payroll, licensing fees, and rent.
Trulieve also claims that the debt total includes $4 million in interest and alleges that Harvest executives used the loans to “pay themselves six-figure salaries while simultaneously asking (Trulieve) to lend them even more money.”
“We have a responsibility as a business and a fiduciary responsibility to our shareholders to collect this debt, and that is what this suit seeks to accomplish. … We agreed to loan them money and they agreed to pay us back, yet they have not paid a penny. Trulieve recognized that Harvest of Ohio and Harvest Grows were not negotiating in good faith and had no intention of repaying the almost $25 million debt and decided not to extend the terms any further.” — Trulieve, in a statement, via Dayton Daily News
According to the complaint, the Ohio Harvest companies entered into several agreements with a company called Harvest Health and Recreation Inc. in 2020. The following year, Trulieve acquired the firm and continued to provide financial assistance to the companies.
Nicole Yelland, executive director of communications for Trulieve, told Dayton Daily News that the company has offered more than a dozen deadline extensions for repayment and that the latest extension expires this month.
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