The town of Hancock, Maryland is headed to mediation with multi-state cannabis company Trulieve over the profits of its 5% equity stake in the company, the Washington Post reports. The town, in 2015, entered into the unique agreement with Harvest Inc., in exchange for a medical cannabis license; however, Trulieve acquired Harvest this year in a $2.1 billion deal.
During a recent Facebook chat with residents, Town Manager Michael Faith said the town and Trulieve disagree “on what constitutes a profit,” prompting the mediation.
Steve White, then-chief executive of Harvest and now president of Trulieve, told the Post that Hancock “will receive what we have agreed accounts for a 5% equity interest in the business” and “they will receive more money if the entity in Maryland does better.”
In an email to the Post, Faith said the town has received a total of $703,193.96, with a $500,000 payment made in July 2021. During one of the town’s prior negotiations with Trulieve, a former mayor said, Hancock asked for $50,000 in annual payments, and, according to Faith, payments of $50,000 were made in July 2021 and March 2022.
The town has also lost about $600,000 plus interest in federal grants due to the deal – the government reclaimed the funds over concerns about giving tax dollars to a town that is involved in a federally outlawed enterprise, namely the cannabis trade.
Hancock officials have not provided an estimate of what they believe they are owed by Trulieve. The mediation is set for August 30.
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