Cansortium Completes Acquisition of RIV Capital, Expands into New York Market
Deal News | Dec 20, 2024 | EIN
Cansortium Inc., operating under the brand 'FLUENT', has completed the acquisition of RIV Capital Inc., combining the two companies under the Fluent name. This strategic acquisition allows Fluent to bolster its presence in the cannabis industry, particularly in New York, where legal retail sales are projected to reach $1 billion by the end of the year. The transaction saw RIV Capital shareholders exchange their shares for 1.245 Fluent shares per RIV share. Following the merger, Fluent shareholders own 51.25% of the newly combined entity, while former RIV shareholders and The Hawthorne Collective hold 48.75%. The company aims to leverage the strengths and operational footprints in key growth markets, enhancing its competitive position as a multi-state operator. Robert Beasley has been appointed CEO of the combined company, while former RIV executive David Vautrin has become chief commercial officer. RIV Capital's previous trading symbols have since been delisted.
Sectors
- Cannabis
- Retail
Geography
- United States – The combined company, Fluent, operates as a multi-state cannabis operator in the US, with strategic expansion highlighted in New York.
- Canada – RIV Capital Inc. is a Canadian company, and the acquisition includes actions related to Canadian securities laws.
Industry
- Cannabis – The article discusses the merger between two cannabis companies, Fluent and RIV Capital, focusing on expanding their market presence in the legal cannabis industry, particularly in New York.
- Retail – The acquisition expands Fluent's retail operations, especially in the growing New York market for legal cannabis.
Financials
- 1.245 – The exchange ratio of Fluent shares provided for each RIV Capital share held in the acquisition.
- 51.25% – The percentage of Fluent shares owned by Fluent shareholders in the combined company.
- 48.75% – The percentage of the combined company owned by former RIV Capital shareholders and The Hawthorne Collective.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Cansortium Inc. | Target/Bidding Company | Company | Operating under the name 'FLUENT', Cansortium Inc. is a company engaged in the legal cannabis industry. |
| RIV Capital Inc. | Selling Company | Company | A Canadian cannabis company acquired by Fluent as part of their expansion strategy in the US market. |
| The Hawthorne Collective | Shareholder | Company | An entity holding a minority share of the newly combined company post-acquisition. |
| Robert Beasley | CEO | Person | The appointed CEO of the newly combined company, Fluent. |
| David Vautrin | Chief Commercial Officer | Person | Former interim CEO of RIV Capital, now serving as Chief Commercial Officer of Fluent post-acquisition. |