Curaleaf Holdings (OTC:CURLF) was a stock on fire Thursday, eclipsing the gain of the S&P 500 index with a more than 8% rise on the day. That's the kind of thing that can happen when a company launches a popular product line in a hot new market.
The product line is Curaleaf's Select Oil, which the company claims is the No. 1 cannabis oil brand in the U.S. The hot new market (for the product, that is) is Illinois, which has been fertile ground for marijuana companies since legalization of the sale and consumption of recreational cannabis kicked off in January.
The state's residents really like their weed. Marijuana sales have risen consistently over the past five reported months, setting new records every time. September's take was nearly $67 million, for a nearly 6% month-over-month increase.
Curaleaf said the Select Oil products will be available in certain locations in the state, including Deerfield and Skokie. The brand's incursion into Illinois widens its overall footprint to 15 states that have legalized either recreational or medical cannabis, or both. This lineup includes California, New York, and Michigan.
It's hard to gauge what kind of impact Select will have on its new market, and on Curaleaf's results. The company says that the line's high-end Select Elite Live "has quickly become a best-seller in every market where it has launched." In Florida, sales of the product exceeded $1 million in less than one month.