Harvest Health and Recreation

Harvest Health and Recreation Inc. was a cannabis company that operated in the medical marijuana industry. In 2021, it was acquired by Trulieve, another player in the cannabis sector. Prior to the acquisition, Harvest Health and Recreation had entered into several agreements with Ohio-based companies Harvest of Ohio and Harvest Grows, beginning in 2020. These agreements, approved by relevant state authorities overseeing Ohio's medical marijuana program, involved providing financial assistance in the form of loans for capital expenses, operating costs, payroll, licensing fees, and rent to help the Ohio companies open and commence operations.

After acquiring Harvest Health and Recreation in 2021, Trulieve continued extending financial support to Harvest of Ohio and Harvest Grows. However, by July 2023, the outstanding debt owed by the Ohio firms to Trulieve had swelled to USD 23.8 million, including over USD 4 million in interest charges. Trulieve alleged that executives at Harvest of Ohio had used the loans to pay themselves substantial salaries while continuing to seek additional funding. Despite offering 15 deadline extensions for repayment, Trulieve claimed the Ohio companies failed to honor their commitments, prompting a lawsuit in July 2023 to recover the unpaid debt.