As the cannabis industry continues to evolve, 2023 presents new opportunities for investors who are looking to tap into this burgeoning market.
New bills & laws are constantly being introduced in the United States including the Louisiana Governor Signing Marijuana Expungements Bill Into Law. This is why it’s important to stay on your toes when it comes to new investment opportunities in the industry. Here are the top marijuana stocks that are poised for growth in the coming year.
Innovative Industrial Properties (Ticker: IIP)
IIP has a unique business model that involves triple-net leases, where tenants cover all property expenses, effectively eliminating surprise expenses for the company. Their sale-leaseback program provides cash to multistate operators (MSOs) who might otherwise have limited access to basic banking services. This strategy allows IIP to acquire facilities and immediately lease them back to the seller, securing long-term tenants.
Green Thumb Industries (Ticker: GTBIF)
Green Thumb Industries stands out among U.S. MSOs, boasting a strong presence in 15 states with 77 operating dispensaries. The company has been focusing on limited-license markets, which offer equal opportunities for MSOs of all sizes to build their brands and customer following. The company has seen tremendous growth, with revenue estimated to have surpassed $1 billion in 2022 from $62 million in full-year sales in 2018. It’s worth noting that more than half of this revenue comes from higher-margin derivative cannabis products, like edibles and beverages.
Trulieve Cannabis (Ticker: TCNNF)
Trulieve Cannabis stands out in terms of sheer size, operating 180 dispensaries in 11 states. Unlike other MSOs, Trulieve focused on building a strong presence in medical marijuana-legal Florida before expanding to other states. The company holds the leading share in Florida, accounting for 122 of the state’s 493 operating dispensaries. This strategy has led to strong branding and customer awareness, keeping marketing expenses low. After acquiring MSO Harvest Health & Recreation, Trulieve now has a strong presence in the mid-Atlantic and the leading share of the recreationally legal Arizona market.
Cresco Labs (Ticker: CRLBF)
Cresco Labs, like Green Thumb, has been expanding its presence in limited-license markets. The company operates 55 dispensaries and is set to grow further with the expected closure of its all-share buyout of MSO Columbia Care. The merged entity will have more than 120 operating dispensaries across 18 legalized states, allowing Cresco Labs to reach more than half the U.S. population with its products. It’s also worth noting that Cresco has the industry’s leading wholesale operations, distributing products to over 1,200 dispensaries nationwide
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