IGC shares pop on filing of provisional patent for CBD-infused energy drinks

Infrastructure-meets-cannabis company India Globalization Capital Inc (NYSE:IGC) announced Wednesday that it has filed an application for a provisional patent with the US Patent and Trademark Office to protect its CBD-infused energy drinks.

The patent filing is the latest step in the company’s plan to introduce a line of hemp and CBD-infused energy drinks, including a sugar-free beverage called Nitro G.

The move allows the Bethesda, Maryland-based company to discuss its CBD energy drinks with manufacturers in the US and Canada as well as companies in other countries where medical cannabis and hemp and hemp-derived products are legal.

Investors welcomed the news, sending the company’s shares up 17.2% to $5.65 in Wednesday’s pre-market session.

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

“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 the product is compliant with local regulation” said CEO Ram Mukunda in a statement.

The filing is for a provisional patent and no assurance can be given as to when and whether a registered patent will be granted by the patent office.

Just last month, ICG announced a distribution and partnership agreement for its line of hemp and CBD-infused energy drinks. 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.

IGTC did not name the company it will partner with in its press release.

READ: Shares of India Globalization Capital fall after $30M offering

The company also recently announced that it priced 5.65 million shares at approximately $5.30 a share, representing gross proceeds of approximately $30 million. 

It intends to use the funds from the offering to market Hyalolex, a cannabis-based product for patients suffering from Alzheimer’s disease. Money will also be plowed into marketing Serosapse, which the company claims addresses “several endpoints” in Parkinson’s disease including “sleep disorder, anxiety, and dyskinesia.”

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

Contact Ellen Kelleher at [email protected]

Story by ProactiveInvestors