US cannabis giant Trulieve has filed a civil lawsuit against its former business partners in a bid to recover unpaid debts worth nearly $25m.
On Friday, Trulieve filed a suit in Franklin County Common Pleas Court against Harvest of Ohio and Harvest Grows, two companies which had been affiliated with Harvest Health & Recreation (HHR).
The partnership, which was signed prior to Trulieve’s billion dollar merger with HHR in, was reportedly agreed due to Trulieve and HHR’s pledge to support diversity, equity and inclusion.
Both Harvest of Ohio and Harvest Grows are headed by Ariane Kirkpatrick, making them the only black-owned, female-owned vertically integrated cannabis dispensaries in Ohio.
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According to the Dayton Daily News, following the merger Trulieve continued offering financial assistance to both businesses.
However, Trulieve is now seeking to recover the $23.8m it loaned to the two companies, including $4m in interest.
Speaking to Benzinga, Harvest of Ohio’s director of community and public relations Jeané Holley said that they had come to an agreement with Trulieve to resolve their issues days before the court case was filed.
The Harvest of Ohio companies agreed not to take their grievances with Trulieve, which included interference with management of the Harvest of OH Companies, gross inflation of expenses and adding inappropriate charges, to court in exchange for holding off on collection actions.
“Last week, within days of a productive meeting to finalise resolution, Trulieve abruptly and without advance notice terminated those negotiations and started collection actions against the Harvest of OH Companies,” Holley said.
