IGC’s plans to manufacture marijuana products in Malasia could be deadly
Investors beware: not all stocks are what they seem. According to MarketWatch, one of the fastest growing marijuana stocks is surrounded by red flags. India Globalization Capital Inc. NYSE AMERICAN: IGC stock began rising rapidly after the company announced plans for a CBD-infused line of drinks, but can the company fulfill its claims?
Upon researching the media outlets and sources where news of IGC’s advances first appeared, Market Watch discovered they were virtually all paid partners. Sources including StockHouse Publishing, SeeThruEquity, and Uptick Newswire all appear to have been paid by IGC for announcements about the company’s products and future plans.
The use of stock promoters is a red flag, according to the U.S. Securities and Exchange Commission. In a 2014 report, the SEC announced an increase in such paid promotions. It warned investors that fraudsters use these promotions to lure investors before cashing out.
But the biggest red flag may be the location of IGC or India Globalization Capital Inc. The company says its products are manufactured in Malaysia, a country with one of the strictest marijuana laws in the world. Malaysia has no medical marijuana program and possession of the drug is punishable by death.
The full report includes details on the company’s many focus changes, from steel and infrastructure assets to wholesale electronics, then blockchain before announcing plans in the marijuana space in 2013. It is reportedly still registered with the SEC as an electronic parts and equipment company.
IGC’s history with the SEC includes nine late-filing notices in the past three years, a notice of delisting from the NYSE in 2017.