CordovaCann (CSE:CDVA / OTCQB:LVRLF) Provides Update on Star Buds Cannabis Co. Retail Operations

Rhea-AI Summary

CordovaCann Corp. (OTCQB:LVRLF) reports strong growth from its Star Buds Cannabis Co. chain in Q1 2023, generating revenues of $1.12M, $1.07M, and $1.15M in January, February, and March, respectively. The stores achieved a gross margin of 25.9%, 26.4%, and 26.0% for the same months. Revenue increased by 8.8% year-on-year despite challenging market conditions. Management anticipates further growth through the closure of competing stores and industry consolidation. Expansion plans for the Star Buds platform are in the pipeline, highlighting the company's resilience and potential for continued profitability.

Positive

• Q1 2023 revenues rose to $1.12M, $1.07M, and $1.15M for January, February, and March, respectively.
• Gross margin per store improved, reaching 25.9% in January, 26.4% in February, and 26.0% in March.
• Revenue growth of 8.8% year-on-year despite economic challenges.
• Management plans to expand Star Buds Cannabis Co. through acquisitions and organic growth.

Negative

• None.

Star Buds Cannabis Co. Platform Continues to Grow to Start 2023

TORONTO, ON / ACCESSWIRE / April 4, 2023 / 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.

Star Buds Cannabis Co. generated strong performance to start 2023. The stores continue to grow despite a difficult economic environment, due to increasing market share, strong cost controls, diverse product assortment and excellent customer service. Gross margin per store also continues to expand and management remains focused on increasing store profitability.

The Star Buds Cannabis Co. chain generated revenues of $1.12 million, $1.07 million, and $1.15 million in January, February, and March, respectively. The stores posted a total gross margin of 25.9% in January, 26.4% in February, and 26.0% in March. The platform grew revenues 8.8% in comparison to the same period from the prior year, with the March quarter being the seasonally weakest quarter of the year.

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, and will share this expansion plan soon.

"Star Buds Cannabis Co. has been resilient during a difficult economic environment, and continues to perform well on a revenue growth and margin basis," stated Taz Turner, Chairman and CEO of Cordova. "Our team is working hard to continue these trends and continues to exploreg expansion opportunities to grow our footprint in 2023."

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
taz@cordovacann.com
(917) 843-2169

SOURCE: CordovaCann Corp.

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FAQ

What were the revenue figures for Star Buds Cannabis Co. in Q1 2023?

Star Buds Cannabis Co. reported revenues of $1.12 million in January, $1.07 million in February, and $1.15 million in March 2023.

How did the gross margins perform for Star Buds Cannabis Co. in Q1 2023?

The gross margins for Star Buds Cannabis Co. were 25.9% in January, 26.4% in February, and 26.0% in March 2023.

What growth did CordovaCann Corp. expect for Star Buds Cannabis Co.?

Management expects continued growth from Star Buds Cannabis Co. due to the closure of competing stores and industry consolidation.

What is the stock symbol for CordovaCann Corp.?

The stock symbol for CordovaCann Corp. is LVRLF on the OTCQB.