Acreage’s CEO announced that the company will move into the coming adult-use market in Illinois. But Acreage will be far from the only player in the game. See which of our portfolio companies will give the MSO a run for its money.

Now that shareholders have approved the landmark agreement for Acreage Holdings Inc. (CSE: ACRG, OTC: ACRGF) to be acquired by Canadian giant Canopy Growth Corp. (NYSE: CGC), Acreage is on the move.

After the deal closed on Thursday, Acreage CEO Kevin Murphy gave an interview at the Players Technology Summit in San Francisco in which he hinted at a number of “head-turner” acquisitions that the company has in the works.

“There are going to be some really exciting ones,” Murphy excitedly shared. “Some people are going to be like, ‘Ooh, wow, that’s amazing!'”

While he was careful not to spill any specifics, he did make one thing clear.

Illinois, which last month became the first state to approve the sale of adult-use cannabis through legislation, will feature prominently in Acreage’s plans. When asked about the coming market, Murphy said: “We have designs on going very deep and very broad in that state.”

It seems that Acreage knows as well as we do that Illinois is primed to become the “Marijuana Mecca of the Midwest.”

It will be especially interesting to see whether the company makes any moves to benefit from the potential for districts to opt in on “social consumption lounges” – something we thought might happen in Las Vegas but will be much more likely in Illinois.

But when Acreage tries to enter “The Land of Lincoln,” it’s going to encounter a buzz saw.

We’re tracking three companies in our portfolios who are already in the state, and they’re going to give Acreage more than a hard time.

Here’s a look at the companies Acreage is going up against…

Sizing Up the Competition

Cresco Labs (CSE: CL, OTC: CLRBF) is among the largest multi-state operators (MSOs), and its headquarters are in Illinois.

Cresco already has five dispensaries in the state, but as Jourdan Kurtz, Executive Vice President, Retail Operations, shared at MJBizConNEXT last month, the company will seek additional licenses. There are already plans for five more Illinois dispensaries.

When word got out about CBD’s amazing health benefits, everything changed. Now, analysts predict a 3,622% jump in sales. For your best chance at potential profits in this industry, go here now.

The advantage Cresco has here is actually within how the laws were written.

Kurtz admitted his surprise at the “thoughtfulness of the legislature,” and in addition to the social justice reform components and the interesting tax structure, he was also referring to the legislation’s preference for craft growers.

While that preference doesn’t directly benefit Cresco, it makes it much more difficult for MSOs from other states to enter the Illinois market.

That means Acreage will have to use considerable leverage from its partnership with Canopy to penetrate a market that Cresco is already dominating.

I added Cresco to the Insider model portfolio back in December, and it only took a few months for the stock to show our members 100% returns.

With recreational marijuana going legal in Illinois on January 1, 2020, I expect that number will only go higher.

In addition to hearing from Kurtz last month, we also had a chance to meet up with President Joe Caltabiano and CEO Charlie Bachtell at the Benzinga Cannabis Capital Conference in Miami this past January.

You can check out that full interview below.

But when it comes to the “Battle for Illinois,” Acreage Holdings and Cresco Labs aren’t the only players.

Looking for the Dark Horse

Last week, I added another company to the Cannabis Investor’s Report portfolio.

This MSO has a presence in 12 states, and just like Cresco, it’s headquartered in Chicago.

That means it has the same advantage over Acreage, and it does not hurt that the company is on the verge of quadrupling its total number of stores.

As I told members, now is the time to strike.

And as fate would have it, two of the core holdings for Cannabis Investor’s Report members are also about to see huge benefits from the developments in Illinois. Sign up here to make sure you see how my full report on how this legislation will benefit that and other companies in our model portfolio.

All of this Midwest competition will be great for the markets, and I fully expect it to be great for your bottom line, too.

Greg Miller
Executive Director, National Institute for Cannabis Investors

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Comments

8 responses to “The Battle for the “Marijuana Mecca of the Midwest””

  1. Morning Greg hope you had a good weekend. Well we are into to the summer now and starting a new month today. I only hope your bold prediction about a great summer for our portfolio proves to be true.Personally based on my investigations I see more of the same for us and I just can’t figure out why!!!! But then again I am not the expert. Thank you for the information as usual and much success to us in the future!!!

  2. I am a charter member
    I have bought all the stocks recommended at the time of Recommendation,
    Not selling , but sure would like to see turn around
    just dont know what to by or where bottom might be, every time I think about doubling down they go lower,

  3. hey Greg, don’t you think that Acreage is just the U.S. foot soldier for Canopy until the feds fully legalize recreational pot? I sure do. if acreage has any trouble going anywhere in the U.S. they want to I would think they have canopy’s blessing and financial backing to just buy out the competition as needed. What do you think?

    Thanks Joe

  4. 2nd Post

    Our favorite “best” stocks are forming solid bases. I have limit orders on my favorite holdings and I do want to add Green Thumb. I have researched this stock since the beginning of the year but have not purchased it.
    I do not believe our stocks will begin to “break-out” until the Fall. But, now is the time to add to your winners.

    Hope this helps.

  5. I watch the portfolio stocks daily and there are a few that seem to stay green. I want to buy more but they don’t seem to dip much and therefore I don’t want to increase my positions and make my cost basis go up. Seems that my luck is that I invested more money in the ones that are not doing so well. This market seems to be so “news” driven as I bought CURLF when cvs pharmacy started selling products. I almost feel like it is better to play the move on the news with some of these mj stocks vs investing because WHERE IS THE BOTTOM?

  6. With blood red massacre type earnings reports from CGC in the near term, all cannabis stocks will be affected negatively. Share lock ups are expiring in October and December for CURLF & CRLBF. Near term headwinds with no near term catalysts equals negative or flatline cannabis stock growth until early 2020 when all of this dust settles. CGC will need alot of time and money to replace and train new CEO’s, management, and employees. Canadian edibles need time to roll out, and the FDA always takes several months or years to finalize any regulations so with CBD, there is no exception. I’m a cannabis bull who studies the market/cannabis space daily and can confirm that NICI has recommended the very best cannabis companies in the world. This whole thing will take years to come into fruition, but if you buy NICI’s recommended MSO’s and just give it a year or two, you guys will be elated and thankful for your financial increase. We will lose in the short term 2019, but gain massively in 2020, 2021, 2022, 2023, 2024 and beyond GUARANTEED. Take your emotions out of this game/way of life the way Jim Kramer says. If you can control your emotions like a focused athlete and remove the emotional element altogether, you will win and create wealth for you and your loves ones. Don’t let emotions discourage you in your investing strategy or allow negative results to push you into selling and giving up altogether; and you will find greater success in your investments and fulfillment in life.

  7. Hi Greg,
    I know things have been tough, but I have faith in your vision for building a long-term, highly profitable Marijuana stock portfolio.

    I’ve have made some good moves outside your buy recommendations; and some bad decisions.

    Would you please comment on the current “situation” with CannTrust? First, awhile back we had the AFRIA debacle. Last week, we have CGC firing its CEO; and now CTST allegedly violates Health Canada regulations, causing it’s already battered stock price to drop 23% Monday, and nearly 7% today! CTST held BUY recommendations across the board at market close last Friday. What is happening?

    Are we experiencing the “wild west” effect? No matter how you view each of the aforementioned individual “black eyes” – taken as a whole, they cast aspersions on the entire Marijuana industry!

  8. Which of Cresco and green thumb industries has the greater growth projection. What is the take over potential for each?

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