Group 1 - The cannabis industry, including multi-state operator Cresco Labs, is facing significant challenges such as black- and gray-market competition, limited access to financial services, and high taxation [1][2] - Cresco Labs' stock performance has been poor, with a $1,000 investment in the stock shrinking to approximately $200 over the past five years, while the S&P 500 index would have grown to $1,878 in the same period [2] - The legal status of cannabis in the U.S. is complicated, with federal illegality contrasted by varying state laws, leading to a patchwork of legalization across the country [4] Group 2 - There is ongoing lobbying for federal rescheduling of marijuana, but it is not a priority for lawmakers, leaving companies like Cresco in a survival mode [5] - Cresco Labs is experiencing declining revenue and ongoing challenges with profitability, although it has recently refinanced a $325 million credit facility and holds $147 million in cash and equivalents [6]

Meanwhile it's still in expansion mode, having opened three dispensaries during the quarter (two in its home state of Florida, and the other in Ohio). Better, it's got plenty of the green -- no, not marijuana, rather cold, hard cash. Thanks to the fact that it's cash flow-positive and its cash, equivalents and restricted cash grew by almost 13% year over year to $401 million. It hasn't been easy to make a buck investing in the marijuana sector, no matter its ultimate potential when and if de facto legalizat ...