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Maryland Town Headed to Mediation Over Profits From Its 5% Stake In Trulieve

Maryland, (Qnnflash) – The town of Hancock, Maryland, is entering into mediation with the multi-state cannabis company Trulieve to address the issue of profits from its 5% equity stake in the company, according to a report by the Washington Post. The unique agreement between Hancock and Harvest Inc. was established in 2015, granting the town a medical cannabis license in exchange for the equity stake. However, this arrangement became complicated when Trulieve acquired Harvest in a significant $2.1 billion deal earlier this year.

The disagreement between the town and Trulieve centers on the definition of “profit,” leading to the need for mediation. Town Manager Michael Faith addressed this discrepancy during a recent Facebook chat with residents, which prompted the decision to seek mediation.

Steve White, who was the CEO of Harvest and is now the President of Trulieve, stated that Hancock will receive what has been agreed upon to account for its 5% equity interest in the business. He also mentioned that the town will receive additional funds if the Maryland entity performs well.

According to Faith, the town has received a total of $703,193.96, with a substantial payment of $500,000 made in July 2021. Earlier negotiations between Hancock and Trulieve had resulted in annual payments of $50,000, with payments made in July 2021 and March 2022. It’s worth noting that this deal has had financial repercussions for the town beyond its profits. Hancock has lost approximately $600,000, along with interest, in federal grants due to concerns over providing tax dollars to a municipality engaged in an activity prohibited at the federal level, namely the cannabis trade.

Hancock officials have not provided an estimated amount of what they believe is owed by Trulieve. The mediation process is scheduled for August 30th, and it aims to address these financial and contractual complexities between the town and the cannabis company.

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