BOISE, Idaho — CordovaCann Corp. (Cordova), a Toronto, Canada-based cannabis-focused consumer products and retail company, is teaming up with Jackson BevCo Inc. to enter the United States next year.
Jackson BevCo (Jacksons) operates stores under the Big Smoke and Tobacco Connection brand names.
On Nov. 29, Cordova entered into a non-binding letter of intent with Jacksons to execute a managed services agreement (MSA) to facilitate the opening and operation of cannabis retail stores inside or adjacent to c-stores owned and operated by Jacksons.
Under the terms of the letter, Cordova will facilitate the opening of cannabis retail stores in all aspects requested by Jacksons, with a primary focus on the regulatory process, compliance, training, security, inventory selection and inventory procurement.
Cannabis stores opened under the MSA will be owned and operated by Jacksons, which will pay Cordova a royalty based on a percentage of revenues generated by these locations. The companies expect the MSA to be executed by January 2023.
The initial stores being discussed by Cordova and Jacksons as the first to launch within the Jacksons footprint are located in Washington, Oregon and Arizona. As Jacksons already has ideal convenience real estate in its existing locations, it is expected that the stores launched under the MSA will generate substantial revenue and profits from cannabis, Cordova stated.
Cordova already operates in key states in which Jacksons operates stores and recreational cannabis sales are legal. The company will be able to sell cannabis flower and manufactured products to stores opened under the MSA, which is expected to create another revenue stream beyond the royalty payments received.
"We are very excited to partner with Jacksons to bring cannabis to locations in which they already operate," said Taz Turner, chairman and CEO of Cordova. "Having developed and fine-tuned our retail operations in the heavily regulated Canadian markets we are excited to bring our years of experience to this opportunity, and this partnership gives Cordova access to a massive retail footprint in markets in which we operate without the need for capital to build out a retail network.
"The MSA will be mutually beneficial as it will provide a new and substantial revenue channel for Jacksons and accelerate the revenue and profitability of Cordova's US operations," Turner added.
Boise-based Jackson BevCo owns and operates 65 Big Smoke and Tobacco Connection c-stores in the western U.S. The company is owned by Jacksons Food Stores, which has 361 wholly owned c-stores and is a joint venture partner in nearly 2,000 additional locations. Jacksons stores are predominantly located in Washington, Oregon, California, Arizona and Idaho.