The U.S. cannabis stocks we’ve found have a presence in Illinois and could benefit from the recent legalization of recreational cannabis in that state
SmallCapPower | June 4, 2019: On May 31, 2019, after a contentious debate in Springfield, Illinois lawmakers finally approved recreational marijuana legalization. Illinois is now the 11th U.S. state to legalize and regulate adult-use cannabis, and legal use will start in January 1, 2020. With a population of close to 13 million, the Dekkert Hewitt group estimates the Illinois medical and recreational opportunity could potentially represent over US$3B in sales. Today we have discovered four U.S. cannabis stocks that have a presence within Illinois and could benefit from recreational legalization in that state.
*Share prices as at close Friday, May 31, 2019, data obtained from S&P Capital IQ
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Cresco Labs Inc. (CSE:CL) – $15.27
Cannabis
Based in Chicago, Cresco Labs is a vertically-integrated cannabis cultivator, manufacturer, and retailer. CL offers its cannabis products in flower, vape pens, and various forms of extracts under the Cresco and Reserve brands. It also sells noncombustible products, which include tinctures, capsules, salves, and transdermal patches under the Remedi brand. Along with Pennsylvania and Florida, Illinois is one of Cresco’s primary sources of revenue. CL owns and operates the maximum five dispensaries allowed by state regulations and has a 27% share of the state’s wholesale market. The legalization would allow CL to obtain another five dispensary licenses, allowing Cresco to continue its growth in its home country.
- Market Cap: $5.1B
- YTD Return: 62.7%
- 90 Day Average Trading Volume: 300,000
Green Thumb Industries Inc. (CSE:GTII) – $15.83
Cannabis
Green Thumb Industries manufactures, distributes, and sells various cannabis products for medical and recreational use in the U.S. GTII distributes its products primarily to third-party retail stores, but also sells its finished products directly to consumers in its own retail stores. As of May 2, 2019, it owned and operated 18 retail stores, as well as had licenses for 77 locations across 12 U.S. markets. Green Thumb operates five dispensaries within Illinois and is in the midst of a capacity expansion at one of its two production sites. As a major cannabis player in Illinois, Green Thumb is expected to benefit from the legalization of cannabis in Illinois as it can now obtain five more retail licenses.
- Market Cap: $2.8B
- YTD Return: 41.1%
- 90 Day Average Trading Volume: 240,000
MedMen Enterprises Inc. (CSE:MMEN) – $2.92
Cannabis
MedMen Enterprises operates as a medical and recreational cannabis cultivator, producer, and retailer in the U.S. MedMen has a presence in 12 different states, with 35 operational retail locations, and 84 retail licenses. MedMen operates Seven Point Powered by MedMen, a cannabis dispensary located within Chicago, Illinois.
- Market Cap: $1.4B
- YTD Return: -26%
- 90 Day Average Trading Volume: 1,040,000
True Leaf Brands Inc (CSE:MJ) – $0.45
Cannabis
Headquartered in Vernon, British Columbia, True Leaf Brands manufactures and distributes hemp-based nutrition for pets. It distributes its products under the True Hemp brand name to over 2,000 stores in North America and Europe, including PetSmart Canada, and Pets Corner UK. There are currently 25 pet stores within Illinois that sell True Leaf products.
- Market Cap: $45.2M
- YTD Return: -10.2%
- 90 Day Average Trading Volume: 160,000
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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