Cansortium Inc. (CSE:TIUM) (OTCQB:CNTMF) also known as "FLUENT" and RIV Capital Inc. (CSE:RIV) (OTC:CNPOF) announced on Thursday the completion of a previously announced arrangement with RIV Capital whereby FLUENT acquired all of the issued and outstanding Class A common shares of RIV Capital in exchange for FLUENT shares.

Under the terms of the agreement, RIV Capital shareholders received 1.245 of a common share of FLUENT in exchange for each RIV Capital share held. As a result, shareholders of FLUENT hold approximately 51.25% of the combined business of FLUENT and RIV Capital shareholders and The Hawthorne Collective together, hold approximately 48.75% of the combined company, each on a fully diluted basis.

Read Also: Cannabis-Focused RIV Capital Reports 186% YoY Surge In Q3 Revenue Ahead Of Major Merger That Will Cover 25% Of US Population

The combined company will continue to operate under the FLUENT name. FLUENT shares will continue to trade on the Canadian Securities Exchange under the symbol "TIUM.U" and on the OTCQB Venture Market under the symbol "CNTMF."

Robert Beasley has been named CEO of the combined company. RIV shares were delisted from the CSE at market close on Dec. 19, 2024. The company will cause RIV Capital to apply to the relevant Canadian securities regulatory authorities to cease to be a reporting issuer under applicable Canadian securities laws.

Management Commentary

"I am thrilled to complete this transaction, and I would like to thank our combined teams for all of their hard work over the past few months and our shareholders for their strong support," said Beasley. "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 which will allow us to act on accretive growth opportunities."

Beasley added, "With New York legal retail sales on pace to exceed $1 billion by year-end, our recent successful launch of MOODS in New York underscores the immense potential of the Combined Company, as we have introduced FLUENT's brands to scale the wholesale operations and gain additional shelf space in dispensaries across the state."

David Vautrin, former chief revenue officer and interim CEO of RIV Capital and, upon closing, now chief commercial officer of FLUENT called the deal transformational.

"This is a transformational deal for RIV Capital and represents the culmination of substantial work for both FLUENT and RIV Capital," Vautrin said. "As evidenced by past performance, we believe FLUENT is one of the most fundamentally sound and now one of the most well-positioned multi-state operators in the US.."

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