MJBiz - May/June 2024 - 12

COMPANY NEWS U.S. & International by MJBizDaily Staff
U.S. DEVELOPMENTS
Trulieve Reports $113M
in 280E Tax Refunds
Marijuana
multistate
operator
Trulieve Cannabis Corp.
received $113 million worth of
tax refunds in a challenge to its
obligation under Section 280E of
the Internal Revenue Code.
Florida-based Trulieve made
waves in the U.S. marijuana
industry when it announced the
plan to seek $143 million worth
of federal tax refunds in October
2023. Trulieve also is seeking
$31 million in state tax refunds.
In a fourth-quarter earnings
report released in late February,
Trulieve said it received:
* $62 million worth of tax
refunds during the quarter
ended Dec. 31.
* " A total of $113 million in
refunds to date, " including
$50.3 million received in
January 2024.
* " One rejection notice in the
amount of $1.2 million. "
Trulieve did not specify
whether the successful or
rejected refunds came from the
federal government or state
governments. Trulieve also did
not reveal the legal basis for its
refund claim.
Some attorneys cautioned that
while the IRS processed Trulieve's
refund, they could still challenge
refund claims or audit the
companies that file them.
For that reason, Trulieve is
still accruing money to pay
tax liabilities in the face of the
uncertainty, said Wes Getman,
the company's chief financial
officer.
" Until this process reaches a
final resolution, we anticipate
12 May-June 2024 | MJBizMagazine
the uncertain tax position will
increase over time, " Getman said
in prepared remarks. " We will
continue to make timely payments
as an ordinary corporate
taxpayer. "
Cannabis and tax attorney
Rachel Gillette said the IRS can
audit returns for up to three
years and, in certain cases, can
go back even further.
" This is why Trulieve still keeps
reserves, at least until the statute
tolls, " Gillette said.
Marijuana SPAC Remaking
Itself With Acquisition
New Yorkbased
Silver
Spike Investment
Corp. will acquire Chicago
Atlantic Loan Portfolio (CALP),
a Chicago Atlantic spokesperson
confirmed.
Silver Spike will acquire
Chicago Atlantic Loan Portfolio's
loans in exchange for newly
issued shares of Silver Spike
common stock, the value of
which will be equal to CALP's
portfolio value. As of Jan. 1,
the loan portfolio consisted
of 24 loans with a value of
approximately $130 million.
Chicago Atlantic agreed to
add at least four loans with a
combined value of about
$43 million before the deal
closes, but both companies
might agree to add more to the
portfolio. Silver Spike said in a
news release that it expects to
have roughly $213 million in net
assets and investments in 27
portfolio companies when the
deal closes.
Illinois-headquartered Chicago
Atlantic will own the majority
of Silver Spike's common stock.
Initially a marijuana-focused
special purpose acquisition
company (SPAC), Silver Spike has
evolved into a finance entity
that now calls itself a businessdevelopment
company.
Silver Spike's board also voted
to broaden the company's
investment strategy to permit
investments outside of cannabis,
health and wellness beginning
this spring.
" While the cannabis sector
will continue to be a focus of
Silver Spike's investment efforts,
Silver Spike believes that the
broadened investment strategy
will benefit Silver Spike and
its stockholders by enabling
Silver Spike to take advantage
of investment opportunities
outside of the cannabis and
health and wellness sectors that
offer attractive risk-adjusted
returns, " the company said in a
statement.
Silver Spike trades on the
Nasdaq as SSIC.
Dumpster Dive Gets
Curio $26,000 Fine
Multistate
operator
Curio
Wellness
was fined $26,000 by Maryland
regulators after they reviewed
video footage of employees at
the company's flagship store
retrieving from a dumpster
cannabis that was later sold to
medical patients and consumers.
The company signed a
consent order on Feb. 16
from the Maryland Cannabis
Administration (MCA)
acknowledging that workers
at its Far & Dotter store in
Timonium, just north of
MJBiz - May/June 2024

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