In another sign of Illinois state market domination, Cresco Labs
(OTCQX:CRLBF) completed the expansion of its cultivation facility in Lincoln, IL, which is the largest in the state. The company also finished the first phase of expansion at its Kankakee facility.
is the only operator in Illinois
with three cultivation sites that are licensed to grow up to 630,000 square feet of flowering canopy. These expansions add almost 180,000 square feet of additional indoor and greenhouse cultivation space, bringing the total cultivation space to 215,000 square feet across all three of its Illinois facilities.
“The expansion of our Illinois cultivation footprint at both our Lincoln and Kankakee facilities enables us to quickly bring additional capacity to such a growing, high-demand market, support supply to our statewide dispensary and wholesale network, and simultaneously cater to both medical and recreational consumers in our home state,” said Charlie Bachtell, Cresco Labs’ CEO and Co-founder. ” The completion of these two fully-funded, industrial-scale expansion projects demonstrates the many strengths of Cresco’s team and our unique ability to continually execute on plan. Due to our phased construction schedule, our first harvests from the additional capacity recently occurred and they will bring limited incremental supply to market toward the end of May and significantly ramp up through Q3. This should dramatically increase sales in the state and help to address the current supply-demand imbalance,”.
The adult-use market in Illinois has been projected by Marijuana Business Daily to potentially generate up to $2.5 billion annually, depending on how many tourists take part in purchasing cannabis products. Cresco currently sells into 100% of licensed dispensaries in Illinois and has maintained its leading market share of wholesale sales in the state. The Company sells its Remedi, Cresco, Reserve, High Supply and Mindy’s Chef Led Artisanal Edibles products wholesale throughout Illinois, and the Company’s products are currently available at every dispensary in the state.
Furthermore, to meet the increasing demand in the state, the company has also bolstered its retail presence through its Sunnyside dispensaries. The company currently operates five dispensaries. It recently received approval to open its sixth location, and it has licenses to open an additional four. The company has announced its intention to open locations in the Gold Coast neighborhood of Chicago, as well as Danville, Schaumburg and South Beloit in Illinois.
Bachtell added, “We are proud to have the largest production capacity in this market, a widely-recognized portfolio of branded products and a rapidly growing retail footprint. The increase in profitability we expect to see over the course of the year will demonstrate the value of Cresco’s stated strategy of going deep in key states and focusing on brands and wholesale distribution.”