India Globalization Capital, Inc. (NYSEAMERICAN: IGC) is having yet another incredibly strong start to the trading session this morning. If you go digging for press releases, you’re not going to find anything, but there is a good reason for the gains. It all has to do with an announcement the company made a couple of days ago. Today, we’ll talk about:
- Why the stock is up;
- what we’re seeing from IGC and
- what we’ll be watching for ahead.
Why IGC Is Up
As mentioned above, India Globalization Capital is climbing in the pre-market hours this morning, but no news has been released. At the end of the day, the gains have to do with a recent distribution and partnership agreement that will bring the company into an emerging market.
IGC said that through the partnership it will be creating a branded hemp/CBD infused energy drink that is a new formulation of a product that it will be commercializing called Nitro G. Nitro G is a sugar free energy drink that the company plans on infusing healthy properties of the cannabis plant into.
This is big news for IGC because anything having to do with cannabis seems to be leading to excitement among investors these days. Ever since Canada announced that it would be legalizing recreational cannabis for adult use, investors have been watching pot stocks closely, sending many of them through the roof. So, the announcement of the coming line of CBD drinks is leading to added investor interest.
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. Although India Globalization Capital hasn’t released any news yet today, the company’s entrance into the CBD drink market is exciting investors and that excitement seems to be lingering. As is normally the case, our partners at Trade Ideas were the first to alert us to today’s gains. Currently (9:02), IGC is trading at $5.50 per share after a gain of $0.90 per share or 19.57% 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 news surrounding the CBD-infused version of Nitro G. We’re also interested in following the company’s efforts to commercialize the other drinks involved in the new partnership. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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