Trulieve Triples Ohio Footprint Through Harvest of OH Settlement

Trulieve is acquiring two medical cannabis dispensaries in Ohio as a result of a litigation settlement with Harvest of OH, the companies announced May 30. This agreement comes ahead of an adult-use sales launch that could happen as soon as next month in the Buckeye State.

Florida-based Trulieve Cannabis Corp. will acquire Harvest of Ohio LLC, which includes retail facilities in Columbus and Beavercreek, as a result of the settlement. A third Harvest of OH medical cannabis dispensary in Athens will be transferred to Harvest of OH CEO Ariane Kirkpatrick as 100% owner and will be rebranded under the name Mavuno, a Swahili word for “harvest, yield and provide.”

“We are happy to announce the resolution of our litigation that triples our footprint in Ohio,” Trulieve CEO Kim River said in a press release. “We look forward to serving medical patients and adult-use customers when permitted.”

The acquired retail facility in Beavercreek, a city of roughly 47,000 people in southwest Ohio, is located in one of the 47-plus localities that have enacted cannabis moratoriums on adult-use cannabis businesses ahead of the state’s market expansion. Beavercreek's current cannabis moratorium is set to expire in June 2024 but could be extended.

At least four cities in Ohio have existing medical cannabis dispensaries where active adult-use cannabis business moratoriums are in place, and Beavercreek is one of them.

RELATED: 47 Ohio Localities Enact Cannabis Moratoriums Ahead of Adult-Use Sales Launch

Following the settlement, Trulieve will have two dispensaries in Columbus, roughly 10 miles apart, in addition to the store in Beavercreek.

Also, as part of the settlement:

• Kirkpatrick will divest ownership of Harvest Grows LLC and Harvest Processing LLC, which operate a production facility in Ironton, to unrelated third parties;
• Trulieve will enter into service agreements to provide operational support to the Ironton production facility;
• Trulieve will pay an immaterial amount to Kirkpatrick.
  

The companies are keeping other terms of the resolution confidential.

“We are also excited to work with the new owners at the Ironton production facility,” Rivers said. “With our advice and support, we are certain these operators can produce the high-quality products Trulieve is known for.”

While Trulieve originally completed its acquisition of Phoenix-based Harvest Health and Recreation Inc. in a $2.1-billion deal in October 2021, Harvest of OH’s assets remained in Kirkpatrick’s control through a unique partnership she had with Harvest Health, in which she was the 51% majority owner of vertical operations in Ohio.

Since Harvest of OH’s Ironton cultivation facility became fully operational in June 2021 and its first store opened in August 2021 in Columbus, the Black woman-owned and family operated company has been one of a few vertically integrated Ohio cannabis operators.

RELATED: Building a Sustainable Business: Q&A With Harvest of OH’s Ariane Kirkpatrick and Amonica Davis

“As the first Black and the first woman-owned cannabis company to achieve 100 percent vertical integration in the state of Ohio, the Harvest of OH team will forever be a part of cannabis history, having broken barriers and paved the way for a diverse and inclusive workforce and supply chain,” Kirkpatrick said in a press release.

Kirkpatrick’s remaining retail facility in Athens, a county of roughly 60,000 people in southeastern Ohio, is located in a cannabis-friendly region of the state. Not only is Athens County home to Ohio’s Cannabis Museum, but it had the highest support for Issue 2 in the state, with more than 70% of voters casting ballots in favor of adult-use legalization in the November 2023 election, according to the Athens County Board of Elections.

“Our dedication and commitment will continue to be the hallmark of Mavuno in Athens and beyond as we enter the Ohio adult-use cannabis market,” Amonica Davis, Kirkpatrick’s sister and the company’s chief operating officer, said.