FLUENT Expands to New York with $160M RIV Capital Deal—Cannabis Industry Shaken!

FLUENT, a multi-state cannabis operator, has completed its acquisition of RIV Capital in one of the largest U.S. cannabis transactions of 2024. The all-stock deal expands FLUENT’s retail footprint to 42 locations and strengthens its presence with wholesale and cultivation operations in New York, a state poised to surpass $1 billion in legal cannabis sales by the end of 2024.

Retail Expansion: The acquisition boosts FLUENT’s retail presence to 42 locations, adding RIV Capital’s Etain™ brand and operations in New York.

Financial Gains: FLUENT eliminates $160 million in debt and gains $33 million in cash, enhancing its ability to pursue future acquisitions.

Ownership Split: FLUENT shareholders now own 51.25% of the combined company, while RIV Capital shareholders and The Hawthorne Collective hold 48.75%.

Leadership: Robert Beasley remains CEO of the combined entity, which will continue operating under the FLUENT name and its trading symbols (CSE: TIUM.U, OTCQB: CNTMF).

Robert Beasley, CEO of FLUENT, emphasized the acquisition’s transformative potential:

1“Together, we have created one of the most well-positioned cannabis operators in the industry, with a strategic footprint in four key growth markets and a strong balance sheet. This positions us to act on accretive growth opportunities and build a profitable organization.”

The move allows FLUENT to capitalize on New York’s rapidly expanding cannabis market, introducing its MOODS product line to scale wholesale operations and secure shelf space in dispensaries across the state.

RIV Capital’s assets, including its cultivation and retail expertise, will enhance FLUENT’s operational efficiency and profitability. Former RIV Capital interim CEO David Vautrin, now Chief Commercial Officer of FLUENT, noted:

“This is a transformational deal that positions us as one of the most fundamentally sound multi-state operators in the U.S.”

FLUENT plans to leverage its expanded resources for sustainable growth, driving efficiencies across its operations while exploring additional mergers and acquisitions. The combined entity’s strategy focuses on maximizing its footprint in key markets like New York, Florida, Pennsylvania, and Texas.

Will FLUENT’s New York Expansion Cement Its Leadership in the U.S. Cannabis Industry?

• Yes, New York’s market is key to FLUENT’s growth.
• No, the competition is too strong.
• Maybe, but only if FLUENT can maintain profitability.