CordovaCann Corp (CNSX:CDVA) Expanding US Footprint Includes California and Washington

CordovaCann Corp (CNSX:CDVA) (OTCMKTS:LVRLF) is a cannabis-focused, consumer products company. CEO Taz Turner discusses the “holy grail of cannabis”: creating cannabis products with reliable, predictable results. CordovaCann is prioritizing growth and is currently expanding its USA footprint to include key states California and Washington. The company also has an option on a pending LP in Ontario and plans to use the facility to serve international operations. In 2019, the company intends to finish its Oregon expansion, which will make the company fully vertically integrated in that jurisdiction, driving significant revenue. In the past, CordovaCann has raised capital internally, but Turner anticipates greater public financing in the future. Turner estimates that the company’s shareholders are split evenly between Canada and the United States and that management holds at 25-35 percent of shares.

Transcript:

James West:   Next we’ve got on our show, joining us live via Skype, Taz Turner, the CEO of CordovaCann Corp is joining me. Taz, how are you today?

Taz Turner:   Great, how are you doing?

James West:   I am well, thank you. Taz, can we start with an overview of what CordovaCann does?

Taz Turner:   Sure. So at Cordova, we’re really driving at what we think is the Holy Grail of cannabis, and that’s delivering products with predictable effects. And what we do is we overlay our technology platform, and that technology allows us to deconstruct the cannabis plant into the individual isolated cannabinoids; we can isolate over 130 cannabinoids today. And then we take those cannabinoids and put them into recipes or specific formulations to create in products.

We can then test those end products, or the efficacy of those products, and then obviously deliver them to the consumer base that we have.

James West:   Wow, interesting. Okay, and so where is your growth focused?

Taz Turner:   So we focused initially on the western US, so we have an operation in Oregon as well as a small operation in Colorado, and then we’ll be moving into California and Washington in the next 30 days; we’ve secured those operations, and we’ll close them shortly.

James West:   Sure, all right. So tell me: who are your biggest customers, potentially, and who are your biggest competitors?

Taz Turner:   I think from a customer standpoint, we’re really looking at both the traditional customer that’s out there today; obviously feel like the west coast customers in the US are some of the most sophisticated customers out there. They’ve been exposed to the product, from a legal standpoint, for the longest time, and therefore, you know, we feel like they have certainly a more sophisticated palate in terms of discerning what’s the good stuff versus maybe the not-so-good stuff.

So we’re starting there, because we feel like our products will have a good take right there, and then certainly we’ll focus and move east as well as international, in due course.

James West:   All right, then. So are you guys going to stay focused on the US?

Taz Turner:   I think in the short term, you’ll mostly see us make moves in the US, but we also have an option on a pending licensed producer in Ontario, and we’re starting to build that out. And then once that is built out and approved by Health Canada, we’ll continue to build that out to greater scale and then use that to not only serve Canada but more importantly, serve international operations.

James West:   Okay, interesting. Where do you guys source your capital?

Taz Turner:   Currently to date we’ve raised capital internally, so we’ve raised it. But you know, you’ll see us, we’ll be making moves to do more public financings in the not too distant future.

James West:   Right. All right, what’s your sort of target market globally, what’s the size of it?

Taz Turner:   I mean, the target market is massive. I mean, California in and of itself, there’s enough to tackle there for the next two years. But that said, you know, it’s billions and billions of dollars. Certainly people have put the numbers on the market that are all over the map; I continue to think they’re probably even underestimated because of just the number of new consumers that’ll come online. Not just in the US, but globally.

James West:   Right, right. Okay, so tell me, Taz, what are the big catalysts you’re looking for in 2019 that are going to drive the stock price?

Taz Turner:   Yeah, so you’ll see us really ramp our California operation, as well as expand our Washington operation, and then also we are about to finish up our expansion in the Oregon market, as well, so you’ll see a total vertically integrated play in Oregon. And so, you know, I think the catalysts are showing the completion of all of those projects and then you’ll see, you know, significant revenue coming out of each of those jurisdictions.

And I think over the more medium term, you’ll see us finish up the Canadian operation and get that licensed and start moving internationally. So I think those are kind of the things over 2019 that I think will really start moving the stock.

James West:   Hmm. Sounds like a master plan. So who owns all of the shares of the company currently – where are the biggest shareholders, where are the biggest blocks?

Taz Turner:   I’d say it’s owned about 50/50 Canada/US currently. Certainly, you know, the management team owns a significant share, I’d say somewhere in the neighbourhood of about 25 to 30 percent of the company, and then the remaining shares are from the shareholders that we’ve brought in over the last 12 to 15 months and, you know, we’ll continue to expand that shareholder base both in Canada and the US.

James West:   All right. Interesting stuff, Taz. We’re going to come back to you as the story develops; thanks very much for joining me today.

Taz Turner:   I really appreciate you having me, thanks so much.

Original article: CordovaCann Corp (CNSX:CDVA) Expanding US Footprint Includes California and Washington

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