Cansortium Inc., known as FLUENT™, has officially acquired RIV Capital Inc. in a deal that strengthens its presence in the growing cannabis market. The acquisition, completed on December 19, 2024, is a major step for FLUENT, especially in expanding into New York’s cannabis industry.

Key Details of the Deal

As part of the agreement, RIV Capital shareholders received 1.245 shares of FLUENT for each share they owned. After the merger, FLUENT shareholders hold about 51.25% of the combined company, while RIV Capital shareholders, including The Hawthorne Collective, own approximately 48.75%. The company will continue to operate under the FLUENT name, with its stock trading on the Canadian Securities Exchange as “TIUM.U” and on the OTCQB Venture Market as “CNTMF.”

Why This Matters

This acquisition gives FLUENT a strong foothold in one of the biggest and fastest-growing cannabis markets. With RIV Capital’s assets, FLUENT now operates 42 retail locations and is launching its first wholesale division. This expansion increases its market presence and enhances its lineup of cannabis brands, setting the company up for long-term success in a highly competitive industry.

Financial Impact

The merger puts FLUENT in a stronger financial position. It gains RIV Capital’s cash reserves of around $33 million while also wiping out $160 million in debt. The Hawthorne Collective’s convertible notes were exchanged for non-voting exchangeable shares, improving FLUENT’s balance sheet. With this financial boost, the company is well-positioned for future acquisitions and growth.

Leadership and Next Steps

Robert Beasley, who has been FLUENT’s CEO since 2020, will continue leading the merged company. He sees the acquisition as a game-changer, stating that it places FLUENT in key markets and strengthens its operations. He also highlighted FLUENT’s commitment to quality and its readiness to seize new opportunities in the evolving cannabis industry.

New York Market Expansion

The timing of this acquisition is crucial, as New York’s cannabis industry is rapidly growing. The state has reported $529.2 million in legal cannabis sales, with 165 dispensaries in operation and over 700 licenses issued. By acquiring RIV Capital’s Etain™ brand, FLUENT aims to establish itself as a major player in this booming market.

Looking Ahead

Bringing RIV Capital under its umbrella marks a big step forward for FLUENT. The company now has more financial flexibility, a larger retail network, and a stronger presence in key markets. With these advantages, FLUENT is well-positioned to thrive in the fast-moving cannabis industry.