CordovaCann Corp. provided an update on its Star Buds Cannabis Co. retail operations in Canada as well as its cultivation, extraction, and manufacturing operations in the United States.
Star Buds Cannabis Co. retail stores in Canada continue to achieve strong performance after a record summer for the company. The stores continue to benefit from market share gains and gross margin expansion despite a difficult economic environment.
In the month of September, five of the fourteen Star Buds Cannabis Co. stores posted record revenues. The fourteen stores collectively generated revenues of $1.24 million with a gross margin of 25.7%. This is a record for daily revenues generated by the retail chain. This is a remarkable feat given that the stores have historically been seasonally strongest in the summer, and these results are a testament to the hard work of the employees of Star Buds Cannabis Co. Management is working on expanding the Star Buds Cannabis Co. footprint in Canada through both organic store growth and acquisitions.
Cordova is also generating stronger revenue from its US operations. Both Washington and California should contribute material revenue for the company in the December quarter, and Cordova is currently expanding its Oregon cultivation facility to increase customer count and revenue in the state. As the company gains traction in these markets, management believes Cordova has the infrastructure in place to expand materially in the United States, in both the current markets it serves, as well as by entering new states.
The announcement by the US President last Thursday to expunge criminal records for cannabis possession and the potential move to de-schedule or reschedule cannabis sets the stage for unprecedented growth for the cannabis industry. Such a shift in the regulatory environment should provide a significant growth catalyst for Cordova, and management has positioned the company to capitalize on this shift through organic growth and acquisitions.
"The Star Buds Cannabis Co. retail chain continues to exceed our expectations by outperforming seasonal trends and through incredible execution in this tough macroeconomic environment," stated Taz Turner, Chairman, and CEO of Cordova. "Our US operations should be another strong driver of growth heading into 2023, and we are excited about the growth initiatives and potential acquisitions we have in the pipeline to expand our stateside footprint, which would likely become even more accretive if the US administration follows through on the deregulation of the cannabis industry."
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CordovaCann Corp. 
www.cordovacann.com