Once taboo, the widely cultivated and consumed cannabis plant is now center stage in the economic world. As legalization gains domestic and international momentum, the cannabis sector continues to attract interest from major investors, academics, and ancillary service providers.

Despite persistent prohibition at the federal level, thirty-seven states and the District of Columbia have legalized medicinal cannabis over the past decade. Nineteen states allow for recreational or “adult” use.

As mainstream support strengthens around state-sanctioned cannabis programs, so does the bottom line. According to research from BofA Securities, legal sales of cannabis in the U.S. grew 40% in 2021 to $25 billion. Further, the 2022 Leafly Jobs Report found 428,059 full-time equivalent jobs supported by legal cannabis as of January 2022, which is a 30% increase from 2021. Last year, the cannabis industry created an average of 280 new jobs per day.

FLUENT, A CINDERELLA STORY (CNTMF)

Cansortium Inc. (d/b/a “FLUENT”) is an industry front-runner worth following. FLUENT is a publicly traded company, co-listed on the Canadian exchange. It holds coveted cultivation, processing, and dispensing licenses in Florida, Texas, and Pennsylvania. According to the Dept. of Health’s OMMU website, it currently ranks the sixth largest cannabis company in Florida’s explosive market.

FLUENT is enjoying a hard-earned reputation both for premium products and operational acumen. In 2020, the company was over-stretched, burdened with oppressive debt covenants, and tiptoeing around the rim of financial failure. Its current reported quarterly earnings figures, however, demonstrate a remarkable turnaround. Through a series of shrewd debt restructuring efforts and controlled, data-driven growth, FLUENT is poised to prosper.

CHIEF EXECUTIVE OFFICER, ROBERT BEASLEY

Robert Beasley was named FLUENT’s Chief Executive Officer in September 2021, following the resignation of its former CEO and founding member, Jose Hidalgo. Robert was familiar with the company, having served as consultant to its Board of Directors earlier that year to assist in optimizing the company portfolio.

Robert brings extensive legislative and organizational expertise to FLUENT. He is universally considered a major player in realigning the company’s trajectory. Before joining the multistate cannabis operator, Robert launched his cannabis career from his home state of Florida. Robert transitioned from the court room into the cannabis sector, consulting some of the first five licensees in Florida and supervising start-up cannabis operations in several other states’ emerging markets. His experience includes everything from developing finance networks, building production and processing facilities, and deploying cannabis businesses in Oregon and Washington, D.C.

According to Robert, his first challenge as newly minted CEO was instigating a cultural shift to foster open communication and information flow. He saw it as a threshold mission to open the segmented personnel boxes and create a team. His secret to shifting the culture: “Employ good people, identify their strengths, and don’t micromanage; employees should be heard and appreciated to achieve their best results.” Once you create a secure relationship with a competent person, they need the latitude and support to do their job effectively. He adds that, “the current working generation measures success in dollars, but also in a multitude of other ways, and companies must adapt to this more wholistic measure of success.”

Robert admits scalability presented FLUENT’s next challenge. The science of cannabis is rapidly evolving, and the legacy market did not have the opportunity to develop the large-scale operations now possible with law enforcement and banking support. Traditional agriculture models are not always effective either, due to the sensitive nature of the cannabis plant and stringent quality control measures in place. New cannabis businesses have wrestled with develop effective scaling strategies while safeguarding their margins and walking within regulatory lines.

FLUENT tackled the scalability issue by investing in software technology and identifying skilled growers with cannabis and commercial agricultural backgrounds alike. The company instituted a rotating series of small-scale tests throughout its facilities to assess emerging plant science technology. Roberts notes, “we are often presented with good ideas and technologies that appear to work for a smaller footprint, the challenge remains being able to determine whether the idea is scalable, affordable, and efficient while preserving quality.”

Under its new leadership, FLUENT remains one of Florida’s largest vertically integrated medical cannabis businesses. Once ripe for the picking—it is now smashing sales records and delivering consistent covenant compliance. Its management chalks up the sales success to the reliable production of quality products. And building trust with FLUENT’s growing customer base. FLUENT’s pride on this point shows in its commitment to patient education and regulatory cooperation As Robert says, “each patient’s story is an opportunity and invitation to walk a few steps in their life–we always come away with an enriched understanding of the people who rely on our products and support.”

FLUENT’S VISION FORWARD

Investors continue to watch many cannabis companies’ visions exceed their capital budgets. Some companies have lost millions investing in the wrong direction. Robert observes that, “the opportunity is there, but you cannot get too heavily loaded with your debt structure before realizing revenues. The industry is passing its gold rush days and settling into traditional notions of efficiency and scale.”

FLUENT’s vision forward? An emphasis on cultivation expansion in Florida, dispensary additions in Pennsylvania, and solidifying a foundation in Texas. FLUENT is off to a slow start in Texas. But that is hardly a surprise given the Lone Star State’s highly restrictive market. According to Robert, FLUENT is implementing a plan to meet and exceed Texas’ growth and production quotients.

In the meantime, increased cultivation capacity is FLUENT’s next big focus. With plans to double its grow footage in Florida, FLUENT is aiming for a top three ranking in the state.

Website: www.getfluent.com