Illinois may have lost some cross-border cannabis sales when Missouri’s adult-use market launched, but Indiana still offers opportunities for some operators.
One such beneficiary of the proximity to a state with no legal market, according to Water Tower Research analyst Jesse Redmond, is MariMed Inc. (OTC: MRMD). The multistate operator just opened a new Thrive dispensary in Casey, Illinois – just 30 minutes from Indiana.
Redmond believes that proximity will motivate Hoosier residents to drive to Casey to find high-quality products that are legal and tested. This is the fifth dispensary in Illinois for MariMed and the 12th nationwide.
“We have high hopes for the Thrive dispensary location in Casey,” said Rosie Naumovski, MariMed’s general manager for the state of Illinois. “It’s ideally located just off Interstate 70, close to the Indiana border, and with no other dispensaries within a 30-minute drive.”
Redmond noted that Illinois has a 10-store cap, which gives MariMed the ability to add five more stores. In addition, the company is building processing and cultivation facilities in Mount Vernon, Illinois. The processing facility is expected to open in the fourth quarter and will allow MariMed to produce its award-winning edibles. The company expects the cultivation facility to open in early 2024.
Redmond estimates that MariMed will report $40.5 million in revenue in the third quarter of 2023 and $152 million for the full year.
Illinois recorded $1.5 billion in sales in 2022, and year-to-date, Illinois adult-use cannabis sales are up 9.06%.