Cannabis company iAnthus Capital Holdings (iAnthus Capital Stock Quote, Chart CSE:IAN) has become the first to open a regulated dispensary in Brooklyn, New York, an announcement which Beacon Securities analyst Russell Stanley takes as a positive, arguing that it shows iAnthus executing on its plan with respect to New York’s largest borough.

“Being first-to-market in Brooklyn should position the Company well in this large market,” Stanley said in a client update on Monday. “IAN plans to open its second NY dispensary in Wappingers Falls later this month, with locations in Staten Island and Chemung County planned for later in 2019. The company is also launching a delivery service covering Brooklyn, further expanding its addressable market.”

Currently, New York state remains a medical-only market with just ten companies (including iAnthus) possessing licenses to operate, but rec legalization seems to be in the cards, with Governor Andrew Cuomo supportive of the move and reportedly aiming to call on the state legislature in his first budget address in March to vote on legalization.

According to iAnthus, their Brooklyn store will feature over 30 locally-sourced products under the company’s Citiva dispensary brand.

“The opening of our Brooklyn dispensary is a major milestone for iAnthus and Citiva. With an ideal location and an expert team in place, we expect this dispensary to be a major asset to the community and the Company,” said Hadley Ford, CEO of iAnthus. “We are incredibly proud to be the first to open a dispensary in Brooklyn, which serves as a testament to iAnthus’ track record of innovation and industry firsts.”

A major upcoming event for iAnthus is the vote by MPX Bioceutical shareholders on the acquisition by iAnthus, proposed last fall. The merger would “significantly expand the company’s geographic reach,” says Stanley, who points to MPX’s US$50 million a year in revenue in Arizona, along with operations in Nevada, Maryland, California and Massachusetts.

Stanley has not altered his estimates for IAN and has reiterated his “Buy” rating and C$16.00 target price, which represents a 12-month return of 168 per cent at the time of publication.