Cresco stock continues to move higher for the second straight session after Cresco Labs Inc (CSE:CL) (OTCQX:CRLBF) announced the completion of its first harvest from its expanded cultivation facility in Lincoln, IL.
Moving in Right Direction
The past months have been quite difficult for cannabis, and most companies have suffered from the existing market conditions. However, most companies have continued to work towards expanding their businesses, and today Cresco Labs made a major announcement. The US-based multistate cannabis operator revealed that it has completed its first harvest at the Lincoln, Illinois cultivation facility.
The medical marijuana market has grown rapidly in Illinois, and the adult-use space is going to open up from January 1, 2020, which is why the development is an important one for Cresco. The company will now have the opportunity to serve one of the biggest markets in the United States.
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Up until this point, the company has been successful in cornering 25% of the market, but with increased production capabilities, Cresco Labs can comfortably go after the rest of the market. The Lincoln facility stretches over 240,000 square feet, and in addition to that, there is a greenhouse and indoor cultivation area totaling 140,000 square feet.
Cresco stock is up 9.40% at $7.34 CAD.
The company has permission to expand the facility to as much as 630,000 square feet, which is the largest permissible limit in Illinois. The company has as many as 23 production facilities and currently operates a total of 29 cannabis stores.
About Cresco Labs
On top of that, Cresco owns 56 retail licenses and is trying to expand into New York, Massachusetts, and Michigan soon. At this point, it has its operations in six states. Moreover, the impending acquisition of Origin House is believed to be a game-changer since it will give Cresco a major presence in the lucrative state of California.
In the third quarter, the company posted sales of $36.2 million, which reflects a sequential growth of 21%. Cresco stock currently trades at 35 times expected earnings.
Featured image: DepositPhotos © karnauhov
