India Globalization Capital, Inc. (NYSEAMERICAN: IGC) is having a great start to the trading session in the market this morning, and for good reason. The company announced a corporate update, exciting investors and sending the stock on a run for the top. Today, we’ll talk about:
- The corporate update;
- what we’re seeing from IGC stock as a result; and
- what we’ll be watching for ahead.
IGC Stock Gains On Corporate Update
As mentioned above, India Globalization Capital is having a great start to the trading session this morning after announcing a corporate update. Here’s what we saw from the update:
In the update, IGC said that Hyalolex, a product that is designed to assist in helping improve the lives of patients suffering from Alzheimer’s disease, will soon be available. The company said that the product will be available in select dispensaries in San Juan, Puerto Rico.
In the release, the company said that the MSRP for a 30 ml bottle of the product will be $55. On Saturday, March 30, 2019, the company will hold a doctor-patient education conference surrounding the product.
IGC also announced that on January 24, 2019, it terminated its Licensing Agreement with DaMa Pharmaceutical, LLC. The parties were unable to negotiate a replacement agreement. Nonetheless, DaMa Pharmaceuticals is not presently involved in the launch of Hyalolex in Puerto Rico.
The company also said that it launched a new website where customers can place orders for wholesale hemp crude extract, hemp distillate, or hemp isolate. The company also announced that due to the FDA’s current general prohibition on the distribution of CBD-infused drinks, it has elected to terminate its Strategic Distributor & Parntership Agreement with Treasure Network SDN BHD surrounding Nitro G.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case, of India Globalization Capital, the news proved to be overwhelmingly positive.
After all, investors are ultimately investing for growth. With a product launch coming soon, revenue growth can be expected. So, it’s not surprising to see that excited investors are pushing the stock for the top.
As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:18), IGC is trading at $2.22 per share after a gain of $0.24 per share or 12.12% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on IGC. In particular, we’re interested in following the story surrounding the company’s continued work to bring Hyalolex to market in Puerto Rico as well as the rest of the work that the company is doing to expand value for investors. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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