CordovaCann provides update on Star Buds operations, exits Oregon, Washington

CordovaCann (LVRLF) provided an update on its Star Buds Cannabis Co. retail operations in Canada, and announced its decision to wind down operations in Oregon and Washington. Star Buds Cannabis Co. stores continued to grow through the first five months of the year and are expected to sustain growth throughout 2025. The Company’s 11 retail stores continue to gain market share and produce consistent gross margin. Star Buds Cannabis Co. is providing customers with a curated and diversified product assortment delivered by a team that is dedicated to providing exceptional customer service. During the months of January through May 2025, the Star Buds Cannabis Co. retail chain recorded average monthly revenues of $1.2M. The retail stores in Ontario continue to generate the vast majority of the revenue, and the average Ontario retail store in the network generated 4.5% year-over-year revenue growth during this period. This growth was despite the closure of some stores for multiple days in March due to severe weather conditions. In May, two stores in the retail network set all-time records for monthly revenues, with this being the first time any store in the network has hit a monthly revenue record since December 2024. The average monthly aggregate gross margin of the chain remained strong at 25.9% for the period of January through May 2025. Positive revenue growth and stable gross margin trends have continued into June, and management expects these trends to continue through the remainder of the year. The upcoming summer period is historically the strongest part of the year for Star Buds Cannabis Co., and this is projected to be the case again in 2025. The strong performance of the retail platform highlights the efficiency of the current store portfolio, and management is optimistic that it can expand the retail footprint beyond the current 11 locations later this year. With the focus on growing the retail presence in Canada and the continued lack of federal regulatory guidance on the cannabis market in the United States, the Company has decided to wind-down its operations in the markets of Oregon and Washington, and is in the process of divesting its assets in both states. Cordova plans to have limited cannabis exposure in the United States in the near-term.