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  "documentTitle": "Trulieve Cannabis Corp (TRUL)",
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  "presentationDate": "2019-12-01 00:00:00",
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  "notes": "The slide uses a Grizzly Research report style to critique Trulieve's financial reporting, comparing it to the Huishan Dairy fraud case.",
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      "text": "In addition, after removing the biological asset adjustment effects on gross profits, we see that there is actually nothing special about Trulieve’s operations.",
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      "text": "Trulieve FCF to Net Income",
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      "text": "Even though the company has portrayed it is profitable, we are highly suspicious. FCF is defined as operating cash flow mines capital expenditures. It is hard to tell from the outside how much of the company’s investment cash flow is attributable to maintenance capex and how much is growth capex. But we note that without outside financing the company couldn’t have sustained itself in a single quarter. We defined Free Cash flow as the sum of Operating Cash Flow and Financing Cash Flow.",
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      "text": "Biological assets valuations are very subjective and relies heavily on management input. It is a great way to boost P&L statements by artificially boosting gross profit and net income margins. We have seen before how paper accounts are abused to create the desired financial statements. Huishan Dairy used fake biological asset mark-ups to boost its financials, the company was exposed by Muddy Waters in December 2016.",
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      "text": "In addition, after removing the biological asset adjustment effects on gross profits, we see that there is actually nothing special about Trulieve’s operations. The “advantage” they purport comes from accounting maneuvers on the biological asset balance.",
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