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.
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 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.
Executive Director, National Institute for Cannabis Investors
P.S. If you want the chance to beat Wall Street and trade like America’s elite, you need this invaluable tool in your arsenal. Not only does it help you cut through the market noise, it also helps pinpoint the most lucrative profit opportunities in the game. To learn how you can get this powerful investing tool at your fingertips, just click here.
8 responses to “The Battle for the “Marijuana Mecca of the Midwest””
July 01 2019