CordovaCann provided an update on its Star Buds Cannabis Co. retail operations in Canada. Star Buds Cannabis Co. stores had a strong close to 2023. The Company’s 11 retail stores continue to increase market share and expand margins due to strong cost controls, optimizing product assortment and continued focus on the customer. The Star Buds Cannabis Co. chain generated revenues of $3.5 million in the last quarter of calendar 2023. The average store in the network grew revenues 10.1% year-over-year in October, 14.4% year-over-year in November, and 14.5% year-over-year in December. The stores in Ontario grew revenues at an even faster pace, with monthly revenues in these stores increasing an average of 17.0% year-over-year in the 3-month period. Furthermore, in December, two stores posted monthly revenue records, and the total store chain produced revenues equal to the previous monthly record, despite there being three fewer stores operating in the chain. Gross margin continues to improve, and the stores posted an aggregate gross margin of 27.0% for the 3-month period ending in December. Strong revenue growth and improving gross margin trends have continued into 2024. 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 working to expand the Star Buds Cannabis Co. platform across Canada through both organic store growth and acquisitions.
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