This morning, most cannabis stocks are plummeting on US and Canadian markets. It's been a rough week on major markets, as broad investor sell-offs have occurred on many major stocks. Today, we'll take a closer look at a US weed stock that was just listed on the Canadian Securities Exchange (CSE).
Weed Stock: Cresco Labs Inc. (CSE:CL)
Cresco Labs is based out of Chicago, Illinois. The cannabis company grows, processes, and sells premium cannabis products in seven states (Arizona, California, Illinois, Massachusetts, Nevada, Ohio, and Pennsylvania). Cresco also has pending applications in two more states (New York and Maryland.)
The weed stock focuses on entering markets in the US with outsized demand potential, high barriers to entry, and significant supply constraints. Cresco feels its "speed-to-market" gives its company a competitive advantage against its competitors. Before going public, the cannabis company, founded in 2014, received $100 million in funding in a series D round that was announced in early Oct 2018.
This morning, the seed-to-sale cannabis company announced it has acquired assets in Massachusetts.
“Massachusetts adds another attractive, high-value market to our national footprint,” said Charles Bachtell, CEO of Cresco Labs. “Up until now, the medical patients of Massachusetts have had limited access to relief. We look forward to utilizing our strong capital resources, proven executional abilities, and our vertically integrated and streamlined growth-manufacturing-retail model to serve these patients and develop meaningful market share as we have in Illinois and Pennsylvania.”
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Cresco will be focusing on both the medicinal and adult-use recreational market in the state. Cresco acquired Hope Heal Health, Inc (HHH), which includes state registration and licensing for cultivation, manufacturing, processing, and the sale of a medical marijuana dispensary. HHH also has a 150,000 sq ft cultivation facility, which is expected to harvest in the Q1 2019.
Week Stock Movement
According to the CSE website, the weed stock is currently seeing monumental gains on the market this morning. Most cannabis stocks are seeing red this morning. At press time, CL is currently trading at $6.50 a share, up +$0.60 (+10.17%).
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