Please ensure Javascript is enabled for purposes of website accessibility

iAnthus Commences Operations in Its Tenth State: New Jersey

By David Jagielski - Feb 4, 2020 at 3:10PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The cannabis cultivator and retailer recently received the OK from Massachusetts as well.

iAnthus Capital Holdings (ITHUF 7.14%) announced on Tuesday that the company received approval to begin operating in New Jersey at its Pleasantville location. The site features a cultivation campus that the company is still building, and when it's complete, it will have an extraction lab and kitchen as well. Initially, the complex will be 33,000 square feet, but it could be expanded to 83,000 square feet.

The company anticipates that it will open its first medical dispensary in New Jersey in Atlantic City during this quarter. In the second quarter, it expects to harvest its first crop from the cultivation facility.

New Jersey could soon be an even more lucrative market for iAnthus and other cannabis companies; the state plans to put a question on the November 2020 ballot regarding the legalization of recreational marijuana. If the ballot initiative is approved, iAnthus says it plans to build another location in Atlantic City to cater to the adult-use market.

Traffic signal showing green light with cannabis flower.

Image source: Getty Images.

Many growth opportunities remain

So far, 11 states have legalized pot for recreational use, the most recent among them being Illinois. New Frontier Data expects the value of the legal U.S. cannabis market to reach at least $30 billion by 2025 based on the states that have already legalized it. 

Last month, iAnthus also received approval to commence operations in Massachusetts. The company, with its market cap of $240 million, is still a relatively small player in the industry. However, over the past 12 months, it has brought in more than $53 million in sales. Like many struggling marijuana companies, it has seen its share price fall -- more than 74% over the past year, outpacing the decline of Horizons Marijuana Life Sciences ETF, which shed 59% of its value during that period.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

iAnthus Capital Stock Quote
iAnthus Capital
ITHUF
$0.07 (7.14%) $0.01
Horizons Marijuana Life Sciences Index ETF Stock Quote
Horizons Marijuana Life Sciences Index ETF
HMLSF
$3.02 (4.40%) $0.13

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
336%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.