CordovaCann provides update on Star Buds retail operations

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, CEO. “Our team is focused on scaling the Canadian retail business and will continue to explore ways to achieve that goal.”