You’ve probably heard of most of the marijuana stocks with multibillion-dollar market caps. They’re the ones that make headlines by establishing partnerships with big companies outside of the cannabis industry and teaming up with well-known celebrities.
There’s a good chance you’ve also heard of some marijuana stocks that aren’t quite as large but are listed on U.S. stock exchanges. CannTrust and HEXO are good examples.
However, there’s one big marijuana stock that has likely flown under the radar for many investors. This stock’s market cap of $2.4 billion makes it bigger than CannTrust and HEXO combined. And it’s a stock you might want to closely watch this year. Which stock is it…
Cresco Labs ranks as one of the largest cannabis operators in the U.S. The company holds cannabis licenses in 11 states. At least five of these states are on track to have legal marijuana markets of $1 billion or more by 2022.
The company will soon have 14 cannabis production facilities in nine states. These facilities combined provide Cresco Labs with an estimated annual production capacity of over 147,500 pounds of cannabis (nearly 67,000 kilograms). However, Cresco expects its expansion projects will boost this capacity to over 515,000 pounds (more than 233,000 kilograms) by the end of 2019.
But Cresco Labs isn’t just a cannabis producer; it’s a cannabis retailer, too. The company currently operates 21 cannabis dispensaries in eight states. Overall, Cresco holds 51 cannabis retail licenses.
Cresco focuses largely on the U.S. medical cannabis opportunity. However, its retail stores in Massachusetts and Nevada sell adult-use recreational cannabis. The company’s average revenue per square foot of $6,500 beats well-known retail leaders including Apple, Starbucks, and Tiffany.
A big deal in the works
Cresco Labs could soon be even larger. The company announced earlier this month that it plans to buy Origin House (NASDAQOTH:ORHOF) in the biggest acquisition of a public U.S. cannabis company ever. The deal isn’t finalized yet, as Origin House shareholders must vote to approve the acquisition. This vote is expected to take place in June.
Origin House started out focusing on royalty streaming deals with cannabis companies. However, the company shifted gears. Origin House is now the leading distributor of cannabis products in California. It also markets several of its own brands and is continuing to expand its lineup.
In addition, Origin House is looking to…
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