Trulieve Cannabis Corp. is currently assessing its options to recover up to $400,000 in personal expenses from its former chief financial officer, Alex D’Amico. According to a filing on Wednesday, Trulieve discovered discrepancies in D’Amico’s expense reimbursement claims and his use of a company credit card.
An investigation by Trulieve’s audit committee concluded that D’Amico violated the company’s policies and procedures by allegedly submitting expense reimbursements and utilizing corporate credit cards for personal expenses. The estimated amount under scrutiny is between $350,000 and $400,000.
Although Trulieve stated that these amounts did not significantly impact its previous financial statements, it may need to include any recovered funds in its tax reports. The company is currently weighing its options, including seeking restitution from D’Amico.
D’Amico departed from Trulieve in June after serving as CFO for approximately three years. Currently, he holds the position of CFO at CytoSorbents Corp.
Trulieve appointed Tim Mullany as CFO on July 10, but he resigned on July 20 due to personal reasons. Ryan Blust, the vice president of finance, is currently serving as interim CFO for Trulieve.
Although Trulieve stock experienced a 1% decline on Thursday, it is worth noting that the stock has seen a 45% drop in value this year. Comparatively, AdvisorShares Pure U.S. Cannabis ETF (MSOS) fell by 26.9%, and AXS Cannabis ETF (THCX) experienced a 32.4% loss in the same period.
Trulieve also mentioned a potential decrease in revenue but expressed hope for a 2024 adult-use cannabis ballot in Florida.
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