Although it is still very new, the Illinois cannabis market has captured the attention of quite a few big-name marijuana stocks. On January 1st of this year, cannabis became recreational legally in the state of Illinois. This made it the first state in the mid-west to legalize marijuana for anyone 21 and up. It may seem like an oddball market to consider when searching for marijuana stocks to buy, but Illinois is the sixth largest state in the U.S. Because of this, the potential for its marijuana market to see success is very high. Pot stock investors are figuring out how to capitalize on this new and intriguing cannabis market. With over 12 million residents, Illinois is poised to be one of the leaders in the U.S. cannabis industry.
So what makes the state such an interesting place for pot stock growth? For starters, the state was the first in the U.S. to pass a recreational cannabis bill utilizing only its legislative powers. In other words, it did not use the public voting process as many others have. Using this method, the state was able to create legislation much faster than if it had used the alternative. Because of this, the market was able to get off to an extremely fast start from the beginning. Additionally, the law stated that any medical marijuana dispensary operating before recreational laws set in could become adult-use if they would like. This meant that as soon as the industry became legal, the framework for purchasing cannabis was very much in place. Other states looking to make cannabis recreationally legal, are utilizing Illinois method to do so. So, which pot stocks are investors watching within the state of Illinois?
How Will This Pot Stock Take Over The Illinois Cannabis Industry
Green Thumb Industries (GTBIF Stock Report) (GTI) is a leading pot stock that has worked to gain a foothold in the Illinois market. The company recently announced that it has opened its seventh retail location in the state. Because of this, it has a unique position to gain a larger market share than most other cannabis companies working out of the state. The CEO of the company, Ben Kovler, stated that “we’re thrilled to continue the momentum of the successful rollout of Illinois adult-use sales with the opening of Rise Quincy, the state’s second adult-use only store.”
In the first two weeks of Illinois opening its market, it reported sales north of $19 million. Some current estimations put the market at $2.5 billion in sales within the next two to three years. With as many as 41 stores across the country, Green Thumb Industries is poised to be a major pot stock working out of the Illinois market.
Is This Marijuana Stock Ready For a New Market?
Cresco Labs (CRLBF Stock Report) (CL) is a pot stock-based out of Chicago, Illinois. In addition to having large operations in Illinois, the company operates as many as 18 facilities for production totaling over 1.2 million square feet of space. With all of its other prospects aside, the company has as much as 25% market share in Illinois. In addition, it has three cultivation licenses that can be capitalized upon at any time.
Currently, the company is touted as being the largest cannabis grower in the state of Illinois. It has a heavy focus on Chicago, as it is the largest city within the state. Cresco Labs is still trading at below $6 which some investors see as an undervaluing of the company. But, we’ll leave this up to you.
These two pot stocks represent only a few of the opportunities in the Illinois cannabis market. As a new industry, cannabis in Illinois has the potential to grow substantially in the next few years. Only time will tell if the state can work out its new system, to become a leading player in the U.S. marijuana market.