Trulieve Cannabis Corp: Why we believe the Company is a Fraud

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  • Our on the ground due diligence including drone footage suggest that the majority of the company’s cultivation space comes from hoop houses that produce low quality output that is prone to infestation and weather damage.
  • We found extensive ties between Trulieve and ongoing FBI investigations into corruption in North Florida.
  • Trulieve’s initial license approval stinks of corruption and involved multiple undisclosed conflicts of interest.
  • CEO Kim Rivers’ husband, JT Burnette is at the very center of the FBI probe, he is the right-hand man of disgraced politician Scott Maddox, and an integral part to the criminal enterprise accused of charges ranging from racketeering to falsifying statements.
  • Our research indicates that Burnette is Trulieve’s key construction partner.
  • Burnette’s construction firms were also called out in the subpoena and are involved in scandals involving public funds in North Florida.
  • There are several undisclosed related party transactions, where Burnette affiliated companies sold real estate to Trulieve at a huge profit.
  • Trulieve lies about the nature of its lenders, and depicts some of them as third parties that we could trace back to insiders. Also, all but one lender used shell entities that show no other activities.
  • Given the opaque set up and lies Trulieve told about its financing sources we are deeply worried what Trulieve is hiding. Inkbridge, a lender of Trulieve that is controlled by Kim Rivers, is known for using government funds to finance ventures. There are also reports of shady foreign individuals trying to get a foothold in Florida’s medical marijuana industry. We ask: Where did the money really come from?
  • The company’s portrayed profitability relies on mark-ups on their grown product, which we believe to be highly suspect in-light of our findings. Also, the company takes out tiny loans from insiders when it is supposedly swimming in cash.
  • Trulieve is facing several economic headwinds, such as increasing competition. With the low-quality production facilities we uncovered, we believe Trulieve will not be able to compete.

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Grizzly Research LLC is focused on producing differentiated research insights on publicly traded companies through in-depth due diligence.