Shares of India Globalization Capital ($IGC) have been on an absolute tear the past week following the announcement they are entering the cannabis-infused energy drink market.
Cannabis-infused drinks has been a hot topic lately with major drink companies like Coca-Cola looking to enter this market.
“According to a Grand View Research forecast, the global energy drinks market is projected to be almost $85 billion by the year 2025, with non-alcoholic beverage sales expected to account for a significant portion of the market. This represents a unique opportunity for the development and commercialization of a CBD-infused, sugar free energy beverage,” stated Ram Mukunda, CEO of IGC.
“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. 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,” continued Mukunda.
India Globalization Technicals
The day of the announcement shares were trading in the low $2 range but as of today they spiked to highs of $14.58, marking an astonishing 525% return in just a few days!
Spikes like this tend to retrace and as you can see in the daily chart above it is very extended with a noticeable reverse hammer candlestick forming.
Ideally we will want to see prices pullback or pull into a consolidation pattern over the next few days. This is where traders who missed the initial move can look to take a position while being able to manage risk more easily.
Company Profile
India Globalization Capital, Inc. engages in the development and commercialization of cannabinoid based alternative therapies for indications such as Alzheimer’s disease, Parkinson’s disease, and pain. It operates through Legacy Infrastructure and Alternative Therapies segments.
The Legacy Infrastructure segment involves in the trading of infrastructure commodities like steel and iron ore; and rental of heavy equipment. The Alternative Therapies segment focuses on the development and commercialization of cannabinoid-based combination therapies.
The company was founded by Ram Mukunda on April 29, 2005 and is headquartered in Bethesda, MD. –MarketWatch
