This one is bigger than HEXO and CannTrust combined
While certain cannabis companies routinely make the headlines – HEXO, Aurora, CannTrust – there are some that are coming up from behind that cannot be ignored. In several cases, these unknown companies are becoming more valuable than the big names and one in particular is now stronger than both HEXO and CannTrust combined. Cresco Labs is one stock that needs to be watched.
Cresco is one of the largest cannabis operators in the U.S. It has licenses in 11 states, of which five are expected to have legal marijuana markets topping $1 billion by 2022. Cresco is close to having 14 production facilities in nine states, which will give it the ability to produce more than 147,500 pounds of cannabis each year. However, Cresco is thinking big and believes it will produce over 515,000 pounds by the end of this year.
The company also operates a number of dispensaries. It currently has 21 in eight states and holds a total of 51 cannabis retail licenses. Given all of its individual characteristics, the company averages $6,500 in revenue per square foot – greater than Apple, Tiffany and Starbucks.
Cresco is also reportedly working to acquire Origin House, the leading distributor of cannabis products in California. It has its own brands of cannabis and is expanding its portfolio, and the acquisition would create the largest deal ever for any U.S. cannabis company.
This past February, Cresco got into the hemp industry, as well. It created a new subsidiary that produces cannabidiol (CBD)-infused products and wants to expand its market to the entire country. The company may not have had its name thrust into the limelight like many others, but this is going to change soon.