Cannabis company Trulieve weighing options after ex-CFO allegedly charged company up to $400,000

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By Steve Gelsi

Trulieve concludes that its ex-CFO's 'irregular' expenses do not have a material impact on its previous financial statements.

Trulieve Cannabis Corp. is weighing options to get reimbursed for up to $400,000 of "personal" expenses by its former chief financial officer, the company said.

Trulieve said it discovered irregularities with ex-CFO Alex D'Amico's expense reimbursement submissions and his use of a corporate credit card, according to a Wednesday filing.

The company's audit committee and the company concluded that D'Amico "engaged in conduct that was inconsistent" with its policies and procedures by both allegedly submitting expense reimbursements and using corporate credit cards for personal expenses.

After an investigation, the company estimated that the total amount in question is between $350,000 to $400,000.

Also read: Cannabis company Tilray rallies as it narrows its loss on a 20% boost to revenue

Truelieve said the amounts involved did not have a material impact on its previous financial statements, but it may need to reflect any recovered money in its tax reports.

"The company is still evaluating its options...which may include, without limitation, the company seeking restitution from Mr. D'Amico," Trulieve said.

D'Amico left the company in June after about three years as CFO.

D'Amico is currently CFO of CytoSorbents Corp. (CTS). A company spokesperson did not reply immediately to an email and a call from MarketWatch.

A Trulieve spokesperson did not comment.

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In the filing, Trulieve said D'Amico's departure as CFO "was not as a result of any disagreements regarding any matter relating to the company's operations, policies or practices."

Trulieve appointed Tim Mullany as CFO as of July 10 but he stepped down on July 20 for personal reasons, the company said.

Ryan Blust, vice president of finance, is now interim CFO at Trulieve.

Trulieve stock was down about 1% on Thursday. The stock has fallen about 45% in 2023, compared to a 26.9% drop by the AdvisorShares Pure U.S. Cannabis ETF MSOS and a 32.4% loss by the AXS Cannabis ETF THCX.

Also read: Trulieve warns of revenue dip, but sees potential 2024 adult use pot ballot in Florida

-Steve Gelsi

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