Cresco Labs stock is in the red today despite the company announcing that the Zoning Board of Appeals granted special use approval for a dispensary located in the prestigious River North neighborhood of Chicago.
Coronavirus Dashes Gains in Cresco Labs Stock
Cresco Labs (CSE:CL) (OTCQX:CRLBF) won licensing approval for two locations in the Central District in Chicago’s lottery held in November of last year, with the River North site set to be one of only two city-approved adult-use dispensaries in downtown Chicago and the sixth one under the Sunnyside banner in Illinois. Cresco also has the option to open four more dispensaries and has already revealed plans to open locations in the Gold Coast neighborhood of Chicago, South Beloit, and Danville.
Despite the new approval, Cresco Labs stock is currently down 12% as markets are left reeling from the spread of the coronavirus.
“Earning the right to operate in this highly coveted location is both a privilege and a significant opportunity for Cresco. The Dispensary is minutes from the Magnificent Mile, one of the busiest shopping districts in the United States. On a personal note, it is also minutes from Cresco’s corporate headquarters, and I couldn’t be more excited about Sunnyside potentially having a flagship dispensary in this neighborhood,” said CEO and Co-Founder Charlie Bachtell.
Cresco Labs stock received a major boost at the beginning of the year when Illinois became the most recent state to legalize recreational cannabis. Cresco’s home state has proved to be one of the most robust cannabis markets in North America, bringing in a massive US$75 million in the first two months. Once at market maturity, Illinois is expected to worth between US$2 billion and US$4 billion, and Cresco hopes to strengthen its market share by completing an expansion that will up its total cultivation to 243,000 square feet.
Cresco Labs stock is currently trading at $4.60 and could be set for further short-term declines as US equity markets enter bearish territory. However, the company looks well placed to see out the storm with its strong showing in Illinois.
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