Star Buds Cannabis Co. Achieved Record Daily Revenues in September
U.S. Operations Becoming Material for the Company
TORONTO, ON / ACCESSWIRE / October 13, 2022 / CordovaCann Corp. (CSE:CDVA)(OTCQB:LVRLF) ("Cordova" or the "Company"), a cannabis-focused consumer products company, is pleased to provide 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."
About CordovaCann Corp.
CordovaCann Corp. is a Canadian-domiciled company focused on building a leading, diversified cannabis products business across multiple jurisdictions including Canada and the United States. Cordova primarily provides services and investment capital to the retail, processing and production vertical markets of the cannabis industry.
Cautionary Note Regarding Forward-Looking Information
This news release contains "forward-looking information" under the provisions of applicable Canadian securities legislation, concerning the business, operations and financial performance and condition of the Company. All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to the Company within the meaning of applicable Canadian securities laws, including statements with respect to the Company's planned business activities, the anticipated benefits of the opening of the store and the prospect of opening additional retail stores. Generally, this forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes", or variations or comparable language of such words and phrases or statements that certain actions, events or results "may", "could", "would", "should", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof. Forward-looking information is necessarily based upon a number of factors and assumptions that, if untrue, could cause the actual results, performances or achievements of the Company to be materially different from future results, performances or achievements expressed or implied by such statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including anticipated costs and ability to achieve business objectives and goals.
Certain important factors that could cause actual results, performances or achievements to differ materially from those in the forward-looking information including but not limited to: global economic and market conditions; the war on terrorism and the potential for war or other hostilities in other parts of the world; the availability of financing and lines of credit; successful integration of acquired or merged businesses; changes in interest rates; management's ability to forecast revenues and control expenses, especially on a quarterly basis; unexpected decline in revenues without a corresponding and timely slowdown in expense growth; the Company's ability to retain key management and employees; intense competition and the Company's ability to meet demand at competitive prices and to continue to introduce new products and new versions of existing products that keep pace with technological developments, satisfy increasingly sophisticated customer requirements and achieve market acceptance; relationships with significant suppliers and customers; as well as other risks and uncertainties, including but not limited to those detailed from time to time in the Company's public filings on EDGAR and SEDAR. Although the Company believes its expectations are based upon reasonable assumptions and has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. The Company provides forward-looking information for the purpose of conveying information about current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. By its nature, this information is subject to known and unknown risks, uncertainties and other important factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are made as of the date hereof and, accordingly, are subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by applicable law.
Chief Executive Officer
SOURCE: CordovaCann Corp.
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