IGC Stock Soars After Entering Cannabis-Infused Drink Market

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An exclusive deal for CBD-infused drinks boosted IGC stock 30 percent on Wednesday

The Maryland-based cannabis pharmaceutical company India Globalization Capital Inc. (NYSEAMERICAN) saw its stock soar 30 percent on the NYSE Wednesday. The stock closed at a 5-year high after the company announced it had entered the cannabis-infused drink market.

IGC plans to launch a line of energy drinks containing cannabidiol, commonly called CBD. It is the non-psychoactive part of the cannabis plant that is also found in hemp. CBD is gaining popularity as a natural ingredient to enhance exercise recovery.

IGC’s trading volume grew to 37.1 million shares and it has grown nearly 480 percent over the past three months. The company announced a 10-year deal to distribute products developed by the marijuana drink maker Nitro G.

IGC agreed to pay 797,000 shares for marketing and distribution rights in the U.S., Canada, Mexico, and South America. The deal also includes exclusive global rights to all Nitro G’s CBD-infused products.

Most other cannabis-related stocks were lower on Wednesday. Chronos Group fell 3 percent marking its fourth-straight loss; Canopy Growth dropped 1.4 percent, and New Age Beverages Corp. fell 0.5 percent.

Those were minor compared to Wednesday’s biggest weed loss. Alefia Health fell 22 percent, marking its first decline in eight sessions. It reached a record high on Tuesday following a report that it received a $10 million investment as part of a deal to acquire the Serruya family’s One Plant.

There were a few exceptions along with IGC. Grower Supreme Cannabis was up 2.5 percent after announcing a 12-month deal with Tilray to supply it with dried flowers for medical patients in Canada.