Shares of Cresco Labs (CRLBF 1.43%) were jumping 9.8% higher as of 3:10 p.m. EDT on Tuesday. The big gain came after the multi-state cannabis operator announced that it had received approval for an adult-use cannabis dispensary in Naperville, Illinois.
Cresco appears to be well on its way to becoming one of the fastest-growing pot stocks over the next few years. The addition of the company's newest dispensary in Naperville will help fuel growth.
CEO and co-founder Charlie Bachtell noted that the company has been "consistent in choosing locations for our dispensaries in Illinois, focusing on high traffic areas in traditional retail environments." That appears to be the case with Cresco's newest dispensary. Naperville is the third-largest city in Illinois. The company's adult-use dispensary is located in one of the busiest shopping areas in the city.
The Naperville location will be Cresco's tenth dispensary in its home state of Illinois and at least for now, it's last in the state. Illinois only allows companies to operate a maximum of 10 dispensaries. The state's adult-use cannabis market has been tremendously successful since opening for business in January. Year-to-date legal retail cannabis sales totaled $600 million during the first eight months of 2020.
Cresco's expansion in Illinois could set the stage for another record quarter when the company announces its third-quarter results in a couple of months. With accelerating revenue growth and an improving bottom line, the marijuana stock certainly appears to be one for investors to closely watch.