cIndia Globalization Capital, Inc. (NYSEAMERICAN: IGC) is having a relatively strong start to the trading session this morning, and for good reason. The company announced that it filed a provisional patent to protect its CBD products. Of course, the news excited investors, sending the stock on a run for the top. Today, we’ll talk about:
- The provisional patent;
- what we’re seeing from IGC stock as a result; and
- what we’ll be watching for ahead.
IGC Is Up On Provisional Patent News
As mentioned above, India Globalization Capital is having a strong start to the trading session this morning after the company announced that it has filed a provisional patent. In a press release issued in after-hours trading yesterday, the company said that it filed a provisional method and composition patent application with the USPTO. The application surrounds the treatment of fatigue and energy restoration. Of course, NBEV informed investors that the filing for the provisional patent comes with no assurance as to whether or not a registered patent will be granted in the future.
In the release, the company said that the patent was filed on October 4th and is one of a series of steps in the development and commercialization plan to support the creation of a branded hemp/CBD sugar-free energy drink.
In a statement, Ram Mukunda, CEO at IGC, had the following to offer:
Our strategy is to combine our expertise with the acquired knowledge associated with the sugar-free energy drink formulation by importing the non-cannabis energy drink concentrate, carrying out the cannabidiol (CBD) or hemp oil addition in the United States or in Canada, then test, bottle, brand, and bring the CBD energy drink to markets where this product is compliant with local regulation.
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 was positive. After all, investors like to invest in products that are protected through patents. So, the announcement of the provisional patent filing excited investors who are sending the stock on a run for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:57), IGC is trading at $5.25 per share after a gain of $0.43 per share or 8.92% 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 develop its CBD beverage. Nonetheless, I do want to remind investors that the beverage is not in existence yet and that the stock comes with a very high level of risk. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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