Please ensure Javascript is enabled for purposes of website accessibility

Why Cresco Labs Stock Popped Today

By Joe Tenebruso – Jul 13, 2020 at 6:29PM

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 marijuana producer is expanding its dispensary operations in a key market.

What happened

Shares of Cresco Labs (CRLBF -0.54%) jumped 12.3% on Monday after it announced the opening of a major new marijuana dispensary. 

So what

The cannabis company said its massive new dispensary in South Beloit, Illinois, is now open for business, selling a wide range of recreational-use products. "At 7,208 square feet, this is one of the largest dispensaries in Illinois and across our entire portfolio," said Cresco Labs co-founder and CEO Charlie Bachtell in a press release.

A marijuana dispensary sign.

Cresco Labs' stock rose sharply on Monday as investors cheered the opening of its new marijuana dispensary. Image source: Getty Images.

The company is also adapting its processes to better allow for social distancing during the ongoing coronavirus pandemic. Customers will be able to place orders on Cresco's e-commerce website and pick them up at its new dispensary the same day.

Now what

Cresco has a strong presence in Illinois, with eight dispensaries now and a ninth scheduled to open later this year. It also possesses the largest cannabis cultivation capacity in the state. In turn, Bachtell says his company is well-positioned to benefit from the market's rapid expansion.

"Illinois cannabis sales set a record in June reaching approximately $77 million, which translates to an almost billion-dollar annualized run rate," Bachtell said. "With our 6x increase in cultivation capacity and focus on going deep in the state, we continue to command an outsized share of this market."

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Cresco Labs Inc. The Motley Fool has a disclosure policy.

Premium Investing Services

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