FLUENT Cannabis Applauds Historic Federal Rescheduling of Cannabis

Rhea-AI Summary

FLUENT (OTCQB: CNTMF) applauded the federal rescheduling of cannabis from Schedule I to Schedule III on December 18, 2025, which the company says recognizes medical use and enables 280E tax relief.

The company expects Schedule III status to improve banking access, allow ordinary business expense deductions, free capital for patient care and innovation, and reduce unlicensed competition following a related November 12, 2025 federal clarification on hemp-derived intoxicants that takes effect by November 2026.

FLUENT noted remaining state‑federal legal conflicts and continued criminal justice reform work.

Positive

• Federal rescheduling to Schedule III announced on Dec 18, 2025
• Allows 280E ordinary business expense deductions for cannabis firms
• Expected to improve banking access for cannabis operators
• Related hemp clarification passed on Nov 12, 2025 limiting intoxicating hemp by Nov 2026

Negative

• State and federal law conflicts remain unresolved
• Full market effects depend on implementation through Nov 2026

Schedule III action affirms medical legitimacy and advances a more regulated national cannabis market

TAMPA, Fla., Dec. 18, 2025 (GLOBE NEWSWIRE) -- FLUENT Corp. (CSE: FNT.U) (OTCQB: CNTMF) (“FLUENT” or the “Company”), today applauds the historic federal action directing the rescheduling of cannabis from Schedule I to Schedule III under the Controlled Substances Act, a landmark policy shift that formally recognizes cannabis’s accepted medical use and represents a critical step toward a more rational and regulated national cannabis framework.

“Federal rescheduling is a pivotal moment for patients, operators, and investors,” said David Vautrin, Interim CEO of FLUENT. “We applaud the Administration for recognizing the therapeutic benefits of cannabis-based medicine and advancing common-sense reforms, including 280E relief.”

Schedule III status will reduce federal policy barriers, improve access to banking, and allow companies to deduct ordinary business expenses previously disallowed under 280E, freeing capital for patient care, product innovation, and market expansion.

This rescheduling follows recent federal clarification around hemp-derived intoxicants passed on November 12^th, 2025. This action materially shuts down the depth and reach of intoxicating hemp derived Cannabis by November 2026. This is expected to reduce unlicensed competition and ease pricing pressure enterprise wide with the greatest impact in key FLUENT states such as Florida and the potential in Texas.

“While rescheduling represents meaningful progress, there remains important work ahead to fully resolve the conflict between state and federal law and to advance broader criminal justice reforms,” Vautrin added. “FLUENT remains committed to operating responsibly within the regulatory framework while supporting continued policy evolution that benefits patients, communities, and investors.”

About FLUENT Corp.

FLUENT, a national cannabis consumer packaged goods company and retailer, is dedicated to being one of the highest quality cannabis companies for the communities it serves. This is driven by FLUENT's unrelenting commitment to operational excellence in cultivation, production, distribution, and retail experience. FLUENT produces an assortment of cannabis products under a diverse portfolio of brands including MOODS, Knack, Wandr, Bag-O and Hyer Kind. FLUENT operates in Florida, New York, Pennsylvania, and Texas. Headquartered in Tampa, Florida, FLUENT employs 700 employees across 8 cultivation and manufacturing facilities, 37 active retail locations and a wholesale division which trades under ENTOURAGE servicing third party retailers in New York. For more information on the Company’s wholesale division ENTOURAGE, please visit https://entouragewholesale.com/.

FLUENT’s Common Shares trade on the Canadian Securities Exchange under the symbol “FNT.U” and on the OTCQB Venture Market under the symbol “CNTMF”. For more information about the Company, please visit www.getFLUENT.com.

Investor Relations Contact

investors@getFLUENT.com

Media Contact:

press@getFLUENT.com

Officer Contact:

Matt Mundy, Chief Legal Officer

(850) 972-8077

FAQ

What did FLUENT announce about federal rescheduling on December 18, 2025 for CNTMF?

FLUENT praised the rescheduling of cannabis from Schedule I to Schedule III, citing medical recognition and policy benefits.

How will Schedule III affect CNTMF's tax treatment under 280E?

Schedule III status is expected to allow ordinary business expense deductions previously disallowed under 280E.

When will the November 12, 2025 hemp clarification affect unlicensed competition for CNTMF?

The company says the November 12, 2025 clarification will materially limit intoxicating hemp by November 2026.

Will rescheduling to Schedule III improve banking for CNTMF and other cannabis firms?

FLUENT expects Schedule III to improve banking access for cannabis operators.

Does FLUENT say all legal conflicts are resolved after the rescheduling for CNTMF?

No; FLUENT noted important work remains to resolve state‑federal law conflicts and advance criminal justice reforms.