IGC’s stock soars after entering CBD-infused energy drink market
Shares of India Globalization Capital Inc. soared 27% in active premarket trade Wednesday, after the Maryland-based infrastructure and cannabis pharmaceutical company (IGC) said it has entered the hemp/cannabidiol-infused energy drink business with its agreement to distribute “Nitro G.” As part of the deal, IGC said it will pay 797,000 shares of restricted, unregistered common stock for a 10-year agreement, for the rights to market the products in the U.S., Canada, Mexico and South America, and for exclusive global rights to all developed CBD-infused products. “By combining the experience of IGC with Hyalolex with the manufacturer in Malaysia, we potentially bring together unique expertise in microencapsulation, solubility, infusion, controlled dose delivery, and sugar free processes, among others,” said IGC Chief Executive Ram Mukunda. “This will help introduce an exciting CBD-infused energy drink to the market and the acquired knowledge base can be further leveraged to diversify the delivery method for IGC branded products including Hyalolextm, our flagship product for patients suffering from Alzheimer’s.” IGC’s stock has run up more than four-fold over the past three months (up 328%), while the Horizons Marijuana Life Sciences Index ETF has climbed 31% and the S&P 500 has gained 7.1%.
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