India Globalization Capital enters CBD-infused energy drinks market, shares jolted

India Globalization Capital Inc (NYSE:IGC) is the latest company to make its mark in the cannabis beverage space.

IGC has announced a distribution and partnership agreement for a line of hemp and CBD-infused energy drinks, including “Nitro G,” a sugar-free beverage.

Shares of IGC jumped more than 40% to $3.27 in Wednesday pre-market trading.

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The Maryland-based company will pay 797,000 shares of its common stock for a 10-year agreement, with a five-year extension option, for the rights to market the new beverage line in North America and South America as well as for global rights to its CBD-infused products.

IGC did not name the company it will partner with in its press release and did not immediately respond to a request for comment.

The global energy drinks market is expected to reach $85 billion by 2025, according to Grand View Research, cited by the company in its release.

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CEO Ram Mukunda said the market potential presents a “unique opportunity” for the company to utilize its pharmaceutical expertise to develop its CBD-infused energy drinks.

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,” stated Mukunda.

The company is a peculiar mash-up of its legacy infrastructure business, which includes heavy equipment rental and real estate management, and its cannabis-focused pharmaceutical branch.

Its pharmaceutical wing’s flagship product is Hyalolex, a treatment for Alzheimer’s disease.

Story by ProactiveInvestors