Adult-use sales in Illinois continue record-breaking streak (CRLBF, GTBIF, CURLF)
In September, adult-use sales grew 5.8% sequentially to $67.6 million, with in-state resident sales growing 6.5% MoM and out-of-state resident sales growing 3.7% MoM. YTD, adult-use sales alone total $364.1 million, while September’s sales represent $767.6 million on an annualized basis.
Earlier in September, Cresco Labs announced the approval and location of its tenth Illinois dispensary in Naperville under its national retail brand Sunnyside. Their dispensary will be located in one of the busiest shopping areas in Naperville, the 3rd largest city in Illinois, with approximately 150,000 residents. Upon final approval from the State of Illinois for the Naperville location, Cresco will operate the maximum allowed ten dispensaries in Illinois.
However, Green Thumb is beating Cresco to the punch and is slated to open its own dispensary under its national retail brand Rise in Naperville on October 8th. The grand opening will include a ribbon cutting ceremony with Naperville Mayor Steve Chirico. Rise Naperville is the eighth Green Thumb store to offer adult-use cannabis in Illinois, and the company has licenses to open two more stores in the state.
In August, combined medical-use and adult-use retail sales in Illinois hit $95.5 million, equating to roughly $1.15 billion in sales on an annualized basis and $599 million YTD through August.
Cresco Labs and Green Thumb are Hedgeye Cannabis Best Idea Longs.
Ex-Canopy CEO Bruce Linton plans to take another cannabis company public in Q1 2021
U.S. based dispensary operator Gage Cannabis, led by ex-Canopy CEO Bruce Linton, plans to go public on a Canadian stock exchange sometime in Q1 2021. After being ousted as CEO from the very company he founded, Linton joined Gage as executive chair in September 2019. Gage has operations only in Michigan and anticipates sales of approximately $13.2 million in Q3 2020. Fabian Monaco, president of Gage Cannabis, commented, “We have seen tremendous growth in the Michigan market in 2020 and Gage has been diligent in capturing that growth through its operating assets.” The company plans to open eight to ten new stores by yearend and will explore expansion plans beyond Michigan in 2021.
New poll shows Arizonans support marijuana legalization (HRVSF)
A poll conducted by Suffolk University/USA TODAY Network between September 26th-30th found that support for Proposition 207 was at 45.6% versus 34.2% opposed. 19% of respondents remain undecided. The state of 7.3 million people is set to vote on recreational use through a ballot measure come this November.
Proposition 207 or The Smart and Safe Arizona Act would allow adults 21+ to possess as much as an ounce of marijuana while allowing sales at the roughly 130 existing medical-marijuana dispensaries in the state. The measure would also place a 16% excise tax on recreational marijuana sales and offer 26 retail licenses to people historically disadvantaged by marijuana laws.