Trulieve's $25M Lawsuit Against Ohio Cannabis Companies Heats Up, Black Female Owners Respond

A contentious situation between cannabis giant Trulieve Cannabis Corp. TCNNF and Black-owned Harvest of Ohio and Harvest Grows is heating up. 

Last week, less than two years after a “billion-dollar merger,” Trulieve filed a civil lawsuit against Harvest of Ohio and Harvest Grows alleging unpaid debts to the tune of nearly $25 million.

What Happened

Trulieve and Harvest Health & Recreation (HHR) wrapped up a billion-dollar merger in October 2021. At the time, Trulieve's CEO told Benzinga the move established the company’s position as the largest and most profitable multi-state operator in the U.S. and enabled them to expand to 11 states.

The Partnership

Harvest of Ohio and Harvest Grows say they partnered with Trulieve and HHR because the Florida-based company pledged to support diversity, equity and inclusion (DEI). 

And Now, See You In Court

“The actions of HHR and now Trulieve are undermining their pledge to DEI in a bid to gain control of the businesses built by women and people of color, kicking them to the curb,” said Harvest of Ohio’s director of community and public relations, Jeané Holley in an emailed statement to Benzinga. 

“This approach to business is not new. HHR and Trulieve’s management have used these strategies in other states and communities across the country, a fact we will prove in court.”

Harvest of Ohio and Harvest Grows are led by Ariane Kirkpatrick, the first and so far only Black-owned and female-owned vertically integrated cannabis dispensary owner in Ohio.

Since the inception of its partnership, said Holley, Harvest of OH had numerous concerns with HHR/Trulieve, which included interference with management of the Harvest of OH Companies, gross inflation of expenses and adding inappropriate charges to Harvest of OH and interference with the Harvest's ability to recapitalize its operations, including repayment of the HHR/Trulieve debt.

Let's Work Things Out?

Holley stated that, “The Harvest of OH Companies agreed to not take its claims to court and HHR/Trulieve agreed not to start collection actions while they worked together to restructure their contractual relationships to address their respective concerns.”

It Seems Trulieve Couldn’t Wait

“Last week, within days of a productive meeting to finalize resolution, Trulieve abruptly and without advance notice terminated those negotiations and started collection actions against the Harvest of OH Companies,” Holley said. 

Trulieve says they have a responsibility to their shareholders to collect the debt. 

"We agreed to loan them money and they agreed to pay us back, yet they have not paid a penny."

Benzinga Cannabis Capital Conference

Trulieve CEO Kim Rivers is a keynote speaker at the Benzinga Cannabis Capital Conference on September 27-28 in Chicago. Get your tickets today before prices go up and secure a spot at the epicenter of cannabis investment and branding.