Please ensure Javascript is enabled for purposes of website accessibility

Legal Cannabis Market in Illinois Continues to Grow

By Eric Volkman - May 6, 2020 at 2:13PM

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

Marijuana sales in the state rose by 3.8% on a month-over-month basis in April.

Lockdown? What lockdown?

Illinois residents continue to patronize marijuana dispensaries in spite of the many restrictions on movement engendered by the coronavirus pandemic.

Even though April was the first full month of social-distancing rules and the closure of non-essential businesses, cannabis sales in the state still grew by 3.8% over the March figure to nearly $37.3 million, according to official data compiled by the Illinois Department of Financial and Professional Regulation. That was also the second-highest tally in the four months that recreational marijuana has been legal in the state.

Generic marijuana dispensary sign.

Image source: Getty Images.

Dispensaries have the advantage of being considered essential businesses in Illinois, a policy choice similar to that made in other states where at least medical cannabis is legal. Yet its dispensaries still have to operate under a clutch of limitations and coronavirus-mitigating regulations.

In order to help its young marijuana industry, Illinois also announced when unveiling the latest monthly figures that it would extend until May 30 the period that dispensaries are allowed to sell medical marijuana via curbside pickup.

"Our top priority is to ensure consumers are safe when they go to a dispensary to purchase cannabis," said Toi Hutchinson, Senior Advisor for Cannabis Control to Gov. Pritzker, in the news release. "The steps we've taken to increase social distancing at dispensaries are accomplishing that, while also enabling this new industry to continue to grow."

Two prominent cannabis companies with relatively large dispensary networks are headquartered in Chicago: Green Thumb Industries (GTBIF 2.50%) and Cresco Labs (CRLBF -2.79%). Neither has yet broken out sales figures for April.

On Tuesday, Green Thumb shares shot 6.7% higher, well eclipsing the gains of the broader stock market. Cresco, however, only edged up marginally on the day. 

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Cresco Labs Inc. and Green Thumb Industries. The Motley Fool has a disclosure policy.

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

Green Thumb Industries Stock Quote
Green Thumb Industries
$11.09 (2.50%) $0.27
Cresco Labs Inc. Stock Quote
Cresco Labs Inc.
$3.48 (-2.79%) $0.10

*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
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/14/2022.

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.