Trulieve Cannabis (TRLV) risk factors, FY2025 10-K

Risks Related to Our Business and Industry

1. 01Cannabis is illegal under United States federal law57% rewritten
2. 02The regulation of cannabis in the United States is uncertain
3. 03We may be subject to constraints on and differences in marketing our products under varying state laws
4. 04Our ability to grow our medical and adult-use cannabis product offerings and dispensary services may be limited
5. 05We may acquire other companies or technologies
6. 06If we cannot manage our growth, it could have a material adverse effect on our business, financial condition and results of operations
7. 07Anti-Money Laundering Laws in the United States may limit access to funds from banks and other financial institutions
8. 08We maintain cash deposits in excess of federally insured limits. Adverse developments affecting financial institutions, including bank failures, could adversely affect our liquidity and financial performance
9. 09We could be materially adversely impacted due to restrictions under U.S. border entry laws
10. 10Our existing operations in the United States, and any future operations, may become the subject of heightened scrutiny by regulators, stock exchanges and other authorities in the United States and Canada
11. 11We expect to incur significant ongoing costs and obligations related to our investment in infrastructure, growth, regulatory compliance and operations
12. 12The market for the Subordinate Voting Shares may be limited for holders of our securities who live in the United States
13. 13We may not be able to locate and obtain the rights to operate at preferred locations
14. 14We expect to be subject to taxation in both Canada and the United States, which could have a material adverse effect on our financial condition and results of operations
15. 15We may be at a higher risk of IRS audit
16. 16We may not have access to United States bankruptcy protections available to non-cannabis businesses
17. 17We are a holding company and our ability to pay dividends or make other distributions to shareholders may be limited
18. 18There is doubt regarding our ability to enforce contracts
19. 19We face increasing competition that may materially and adversely affect our business, financial condition and results of operations
20. 20We are subject to limits on our ability to own the licenses necessary to operate our business, which will adversely affect our ability to grow our business and market share in certain states
21. 21Our subsidiaries may not be able to obtain or maintain necessary permits and authorizations
22. 22We may not be able to accurately forecast our operating results and plan our operations due to uncertainties in the cannabis industry
23. 23We are subject to risks related to growing an agricultural product
24. 24We may encounter unknown environmental risks
25. 25We may not be able to adequately protect our intellectual property
26. 26Our property is subject to risk of civil asset forfeiture
27. 27We are highly dependent on certain key personnel
28. 28We face inherent risks of liability claims related to the use of our products
29. 29We face risks related to our products
30. 30Our medical marijuana business may be impacted by consumer perception of the cannabis industry, which we cannot control or predict
31. 31Product recalls could result in a material and adverse impact on our business, financial condition and results of operations
32. 32We are subject to security risks related to our products as well as our information and technology systems84% rewritten
33. 33In addition, we collect and store personal information about our customers and we are responsible for protecting thatNew
34. 34We face exposure to fraudulent or illegal activity by employees, contractors, consultants and agents, which may subject us to investigations and actions
35. 35We could be subject to criminal prosecution or civil liabilities under RICO
36. 36Our indebtedness may adversely affect our business, financial condition and financial results67% rewritten
37. 37We rely on key utility services

Risks Related to Owning Subordinate Voting Shares

1. 38A return on our securities is not guaranteed
2. 39Additional issuances of Multiple Voting Shares or Subordinate Voting Shares may result in further dilution and could have anti-takeover effects
3. 40Sales of substantial amounts of Subordinate Voting Shares by our existing shareholders in the public market may have an adverse effect on the market price of the Subordinate Voting Shares
4. 41The market price for the Subordinate Voting Shares has been and is likely to continue to be volatile
5. 42There may not be sufficient liquidity in the markets for our Subordinate Voting Shares

Risks Related to Being a Public Company

1. 43We are subject to increased costs as a result of being a U.S. reporting company