FLUENT Corp. has reached a definitive agreement to sell its New York cannabis license and certain operating assets to an unnamed third-party operator.

The agreement, signed July 22, would transfer Etain, LLC, FLUENT’s operating entity in New York, including its Registered Organization license, certain operating assets and associated leases. The buyer would provide cash consideration, subject to customary purchase price adjustments.

FLUENT said the transaction is intended to support the company’s previously announced arrangement involving Vireo Growth Inc. and help satisfy applicable regulatory requirements connected to that deal.

The company said the sale would also allow for an orderly transition of its New York operations to an experienced operator that will continue serving medical marijuana patients and recreational consumers.

The transaction remains subject to several closing conditions, including approval of the ownership change by the New York State Cannabis Control Board. All conditions required to complete FLUENT’s arrangement with Vireo Growth must also be satisfied.

The company did not disclose the name of the purchaser or the value of the proposed transaction.

FLUENT operates in Florida, New York and Texas and produces cannabis products under several brands, including MOODS, Knack, Wandr, Bag-O and Hyer Kind.

The Tampa-based company employs approximately 500 people and operates seven cultivation and manufacturing facilities and 34 active retail locations.

FLUENT’s shares trade on the Canadian Securities Exchange under the ticker FNT.U and on the OTCQB Venture Market under CNTMF.