Business Overview (Continued)
Most of the Company’s existing business takes place in the State of Florida.
Fluent Servicing was formed on July 1, 2015 for the purpose of cultivating, manufacturing, and retailing in the cannabis industry.
As of the date of this MD&A, Fluent Servicing operates one cultivation and production facility in Tampa, FL, producing various
products ranging from tinctures, capsules, suppositories, topicals and inhalation vaporizers. The Tampa facility is approximately
22,000 sq. ft. of indoor cultivation which includes 20,160 sq. ft. of flowering canopy over 6 levels. The Company transitioned its
production and cultivation activities to the Tampa facility from the Winter Garden facility in July and August 2020, prior to the
termination of the Winter Garden lease on August 13, 2020.
On July 20, 2020, the Company secured and additional 26,000 square foot cultivation and production facility in Zolfo Springs,
Florida to complement the Company's existing Florida cultivation and production capabilities with first harvest expected during
the first quarter of 2021.
As of the date of this MD&A, the Company operates 21 dispensaries throughout the State of Florida. An additional five locations
are in various stages of construction and regulatory approval with plans to open during 2020.
In the State of Florida, the Department of Health, Office of Medical Marijuana Use (the “Department”) issues licenses to Medical
Marijuana Treatment Centers to cultivate, process and sell medical cannabis (referred to as an “MMTC License”). The Company
operates under an MMTC License issued to Spirit Lake Road Nursery, LLC, a wholly-owned indirect subsidiary of the Company.
The Company owns and operates 1,300 sq. ft. of cultivation space in climate and humidity-controlled C-containers which includes
1,920 sq. ft. of flowering canopy over 2 levels. Currently, the Company only sells in Texas via home deliveries. The Company has
rights to expand the cultivation facility up to 400,000 additional sq. ft. as demand requires.
In May 2019, the Texas legislature passed a bill that significantly expanded the Texas Compassionate Use Act. It was subsequently
signed into law by the Governor. The new law increases legal access to medical cannabis products containing up to 0.5 percent
THC for patients coping with a broader list of chronic medical conditions and diseases including epilepsy, seizure disorders,
multiple sclerosis, spasticity, amyotrophic lateral sclerosis, autism, and terminal cancer.
The Company currently operates one (1) dispensary and is licensed to operate up to three (3) dispensaries in the south-central
region of Pennsylvania for the sale of medical cannabis only. This dispensing permit allows for the purchase of finished products
from permitted processors in the Commonwealth of Pennsylvania.
The Company expects to develop two (2) new dispensaries in the south-central region of Pennsylvania during 2020 that will begin
operating in early 2021.
In October 2018, the Company partnered with Green Standard Holdings LLC and Green Standard, Inc. collectively, (“Green
Standard”) to acquire cultivation, production and future retail dispensary licenses from Green Standard. To date, Green Standard
has been issued 12 Class C Cultivation Licenses and has pre-qualification status to receive 12 additional Class C Cultivation
Licenses and an operating license to process and a retail license to open up to 8 retail locations in the state. Each Class C
Cultivation license allows for the cultivation of up to 1,500 plants. In May 2019, the Company acquired vacant land in order to
develop an outdoor cultivation facility with Green Standard. Cultivation began in August 2019 and the first harvest from this
Michigan facility started to be sold to wholesale customers during the second quarter of 2020. Current year Michigan cultivation
is underway, and harvest of approximately 5,500 plants is expected to occur in late summer