CordovaCann provides update on Star Buds retail operations

CordovaCann provides an update on its Star Buds Cannabis Co. retail operations in Canada. Star Buds Cannabis Co. stores continue to grow nicely in 2023 despite a difficult environment for the retail cannabis industry. The Company’s 11 retail stores continue to increase market share and expand margins due to strong cost controls, optimizing product assortment and always focusing on the customer. The Star Buds Cannabis Co. chain generated revenues of $1.2 million in each of the past two months, nearing record monthly revenues for the retail platform. The average store in the network grew revenues 7.5% year-over-year in August and 8.9% year-over-year in September. The stores in Ontario grew revenues at an even faster pace, with revenues in these stores increasing an average of 16.8% year-over-year in August and 14.3% year-over-year in September. In August, 2 stores posted monthly revenue records, and in September, 1 store reached a monthly revenue record. Gross margin has remained strong throughout 2023, and the stores posted an aggregate gross margin of 26.4% in August and 26.3% in September. Strong revenue growth and stable gross margin trends have continued into October. Management expects Star Buds Cannabis Co. to continue to benefit from closures of competing stores, industry consolidation, and increased customer awareness. The Company is also planning to expand the Star Buds Cannabis Co. platform across Canada through both organic store growth and acquisitions.