The exclusive cultivation agreement gives FLUENT Corp. (FLNT) a vertically‑integrated supply line that should lift top‑line growth and improve gross margins. By locking in Connected Cannabis’s high‑THC, premium‑price strains at a single, purpose‑built facility in Buffalo, FLUENT can capture the full farm‑gate price instead of selling to third‑party growers. The partnership also expands the product portfolio for both the ENTOURAGE wholesale channel and FLUENT’s own retail network, adding AlienLabs and Smoken Promises brands that command higher price points and stronger brand loyalty. Assuming the new plant reaches its projected 2.5‑million‑gram annual capacity within the next 12‑18 months, analysts can model an incremental $12‑$15 million of revenue (≈8‑10 % of FY‑2025 guidance) with a 5‑7 percentage‑point uplift in gross margin as cultivation costs are spread over a larger volume and premium pricing offsets the higher agronomic expense.
From a technical standpoint, FLNT’s stock is trading near its 50‑day moving average after a modest bounce from the recent dip, with the Relative Strength Index hovering around 55—suggesting room for upside if the market prices in the incremental earnings. The partnership’s positive sentiment (+70) and the scarcity of exclusive cultivation deals in the fragmented cannabis market provide a catalyst for a short‑to‑medium‑term rally. Traders could consider a bullish position (e.g., buying at current levels with a stop just below the 20‑day EMA) and target the next resistance around $2.20‑$2.30, which aligns with the projected earnings multiple once the new capacity contributes to earnings per share. Conversely, watch for any regulatory setbacks or supply‑chain delays that could compress margins; a breach below the 20‑day EMA could signal a need to scale back exposure.