Qand A
One of our listeners is asking us to provide an update on our M&A pipeline. And what does that execution look like? Perhaps Justin can take that.
Justin Dye
Well, without sharing some of our secrets, I think when we set this thing out three years ago, we said we wanted to be number one in Colorado. We wanted to be retail focused, develop good relationships with a broad assortment of suppliers that have the broadest assortment of products, give our customers a lot of choice within those stores, develop brands and products that we create when we listen to the customer and find out what they want. I think autograft and Purple Bs are good examples of that, create work really hard on winning processes, manufacturing, making data-driven decisions, creating really good processes.
So we take cost out of the business, and we can operate at a very efficient level, and that's what we're doing. So we're going to continue to look for organic growth, so stores finding new stores in the state of Colorado. I'll remind everybody there's a little over 650 adult-use stores. We have 23 of those today. And we see a lot of growth. We've seen there's going to be -- there will continue to be consolidation. We will be a consolidator, and we're going to continue to work on that. And we're going to continue to partner with good brands and do that.
And then obviously, in New Mexico, we're opening we've opened two. We've got another four coming this year. We've got a good slate of stores. Our real estate teamshave done a great job working in the local towns and counties in both Colorado and New Mexico, so you'll see us adding more stores. And we want every store to be obviously meet the needs of the local to. We're good stewards. We don't spend a great deal of money on those stores. they're clean, they're nice stores, but we watch our capital closely. -- and we expect them to generate cash flow.
And we're going to continue to do that, and we're stint find good locations. And then there's acquisitions that bringing great retail locations, bring capabilities, bring brands, products to us, and we will look to drive synergies, cost synergies, revenue synergies and leverage our fixed operating costs and SG&A. So it really bring our operating playbook, merchandising what good looks like from a product standpoint in the stores or what we're going to carry, how we're going to price it, how we're going to promote it. And then what we're going to do from a retail and distribution, manufacturing delivery, et cetera, on the supply chain side. So those are -- that's what we're going to continue to work on. Could there be other states that fit our regional our regional strategy. We'll continue to evaluate those types of opportunities. But that's really what we're going to do. I mean goal number one is continue to work on Colorado and continue to work on New Mexico. And that's our strategy. We've got a good balance sheet. We've got cash. We've got cash, and we're in good shape. So that's really where we're headed and what we're up to. Thanks.
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