Illinois is aiming to become the next US state to legalize recreational cannabis. And today I am going to reveal two promising, young cannabis companies that are perfectly positioned to cash in on what should become one of the largest cannabis markets in the US.
Over the weekend Illinois governor JB Pritzker released a plan to legalize recreational cannabis on January 1, 2020.
Here’s are some more details from the Chicago Sun Times.
Gov. J.B. Pritzker Saturday announced the full details of the much-anticipated bill that would lift the statewide prohibition on marijuana and allow Illinois pot shops to start selling the drug legally by the start of the new year.
The 300-page legislation would allow Illinoisans over 21 years old to possess 30 grams, or just over an ounce of cannabis flower — or the dried plant matter that’s commonly smoked — and 5 grams, or less than a quarter-ounce, of cannabis concentrates like hash oil. Additionally, Illinoisans would be able to carry up to a half-gram of pot-infused products like edibles.
The bill still has some hurdles to clear, but I see a high probability that it moves forward. Illinois is struggling with major financial issues and politicians are scrambling to generate additional tax dollars.
If the bill does pass, Illinois should grow into one of the larges cannabis markets in the US.
According to a recent study by Colorado-based cannabis consulting firm Freedman and Koski, annual recreational cannabis sales could be between $1.7 billion and $2.7 billion per year. Measured by weight, annual consumption is projected to be between 350,000 and 550,000 pounds. Here’s a link to the full report.
A SNAPSHOT OF DEMAND FOR ADULT-USE CANNABIS IN ILLINOIS
You don’t have to be a genius to see that if the bill passes, there is going to be huge demand for cannabis in Illinois.
Today, I am going to reveal two promising young cannabis companies that are ready to fill the gap.
These two early industry leaders are:
- two of the largest cannabis companies in the US
- early leaders in Illinois’s medical cannabis market
- multi state operators
- vertically integrated
- already worth billions of dollars
Cresco Labs (CSE: CL, OTC: CRLBF) is a direct play on Illinois’s bid to legalize recreational cannabis. Cresco is already one of the largest cannabis companies in the US with a market cap of $1.4 billion. Headquartered in Chicago, Cresco is an early leader in Illinois’s medical cannabis industry. It currently operates three cultivation facilities in Illinois and five retail dispensaries.
*Image from Cresco Website
If Illinois succeeds in going legal I am expecting Cresco to ramp its operations in the state, adding new cultivation facilities and dispensaries. Cresco has been on a roll since shares began trading on the Canadian Securities Exchange in early December – more than doubling in price.
*Image from Canadian Securities Exchange
Green Thumb Industries (CSE: GTII, OTC: GTBIF) is also one of the largest cannabis companies in the US with a market cap of $2.7 billion. Just like Cresco, Green Thumb is also headquartered in Chicago and has established itself as an early leader in Illinois’s medical cannabis market. Green Thumb operates two cultivation facilities in Illinois and four dispensaries.
*Image from Green Thumb website
Green Thumb began trading on the Canadian Securities Exchange in July, 2018. Although volatile, shares have done well, climbing almost 100%.
*Image from Canadian Securities Exchange
The Big Picture on Illinois’s Bid to Go Legal and Cresco and Green Thumb
Illinois is aiming to legalize recreational cannabis by the end of 2019. If it happens, the state should grow into one of the largest cannabis markets in the US. Cresco and Green Thumb are early leaders in Illinois’s medical cannabis market. Both are in position to pounce if Illinois goes legal.
Disclaimer: This report is for entertainment purposes only. Every investor should consult with an investment advisor before making investment decisions. The Vodicka Group, Inc. is not a broker/dealer. We do not receive compensation for mentioning stocks. At various times, the clients, publishers and employees of Vodicka Group, Inc., may buy or sell the securities discussed for purposes of investment or trading. Michael Vodicka owns shares of Cresco Labs.
