Star Buds Cannabis Co. Stores Achieve Record Month in August
TORONTO, ON / ACCESSWIRE / September 26, 2024 / CordovaCann Corp. (CSE:CDVA)(OTCQB:LVRLF) ("Cordova" or the "Company"), a cannabis-focused consumer products company, proudly announces an update on its Star Buds Cannabis Co. retail operations in Canada.
Star Buds Cannabis Co. stores produced strong growth in the spring and summer and are expected to sustain this growth heading into the final stretch of the year. The Company's 11 retail stores continue to gain market share and produce consistent gross profit. The stores have won over customers with a strong and diversified assortment of products and a team dedicated to providing exceptional customer service.
During the six-month period from March to August 2024, the Star Buds Cannabis Co. chain recorded average monthly revenues of $1.2 million. The average store in the network generated 10.3% year-over-year revenue growth during the six-month period. Our higher grossing stores in Ontario continue to grow at a faster pace, with average monthly revenues growing by 13.9% during the same period. The aggregate gross margin from March to August remained strong at 26.9%, which is an increase of 800 basis points over the same period a year ago.
In August, the Star Buds Cannabis Co. chain set a record for monthly revenues and gross profit, surpassing the previous record set in August 2022, when the chain operated three additional stores. This performance highlights the efficiency of the current store portfolio, despite operating in fewer locations. Positive momentum in both revenue and gross profit trends has continued into September, and the Company is optimistic about finishing the year strong. Currently, the Company operates its Star Buds Cannabis Co. retail platform via its two subsidiaries, 2734158 Ontario Inc. and 10062771 Manitoba Ltd.
"The Star Buds Cannabis Co. stores have shown strength in 2024, and we are excited about the growth of the platform as we head into the final months of the year," stated Taz Turner, Chairman and CEO of Cordova. "Our team is focused on scaling the Canadian retail business and will continue to explore ways to achieve that goal."
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
Company Contact:
Taz Turner
Chief Executive Officer
[email protected]
(917) 843-2169
SOURCE: CordovaCann Corp.