This law expert is sharing his insight about the Trulieve lawsuits…
There’s a storm brewing in Florida, but it has nothing to do with the weather.
Near the end of December 2019, Grizzly Research made a bold statement about Trulieve Cannabis Corp. (OTC: TCNNF).
“We believe the company is a fraud.”
In a 26-page report, the company presented its case.
Trulieve CEO Kim Rivers replied shortly after in a press release.
“We ask that our investors be aware that the Report reflects the opinions of an acknowledged short seller, whose sole interest is in profiting from a decline in the price of the Company’s shares. I have full confidence in our management team and their abilities to continue to serve our customers without being distracted by these baseless allegations. Trulieve reserves all of its rights to take appropriate legal action against those responsible for the Report.”
Shareholders are now suing Trulieve, and Trulieve is suing Grizzly.
An In-Depth Look into the Trulieve Lawsuits
As a finance guy, I still like TCNNF as an investment.
To me, the Grizzly report reads more like a rant than thorough investigating. And some of the findings are just downright sloppy. For example, it points out sale-leaseback transactions as some sort of inside deals. This deal was a transaction conducted with Innovative Industrial Properties Inc. (NYSE: IIPR) and was announced in a press release.
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As for fudging the numbers, that’s what auditors and accounting standards are for. This is something Grizzly will have to prove in court.
I don’t know what to make of Kim’s husband in all of this, but I’m not going to hang that on her. Trulieve has a 60% market share in Florida and didn’t get way over its skis with capital – no wonder it’s profitable.
But I’m no law expert.
Fortunately, my friend, colleague, lawyer, and Advisory Board member Joshua Sanderlin is an expert.
One of the biggest questions we’ve received is how can a short seller make potentially false and misleading claims and publish that information and, in turn, profit from their short position.
Joshua is going to walk you through that answer and will break down everything that is happening in the report below.
Don Yocham, CFA
Executive Director, National Institute for Cannabis Investors
P.S. I’m heading down to Miami tomorrow for two big conferences. While I’m there, I’ll be looking for profit opportunities for you – so keep an eye on your inbox tomorrow for an exclusive on-the-ground update!
13 responses to “An Expert’s Take on the Trulieve Lawsuits”
February 18 2020