Cannabis companies CV Sciences Inc (OTCQB:CVSI), Cronos Group Inc (NASDAQ:CRON), Tilray Inc (NASDAQ:TLRY) and Namaste Technologies have all been targeted by short-seller Andrew Left’s Citron Research.
The latest cannabis company to fall into Citron’s sights is India Globalization Capital Inc (NYSE: IGC).
The researcher dubbed IGC “the poster child of a cannabis bubble” via Twitter.
$IGC. If you are able to short, it is a gift. No product. All hype. Raised Money 2 weeks ago at $1.15 Finger traders will get burned. This hype stock is the poster child of a cannabis bubble. Always cautious but nothing but air. Could write pages about this scheme
— Citron Research (@CitronResearch) October 2, 2018
Correction. $IGC has raised money 3 times in 3 weeks at an average price of $3.31. At least the company is honest about the absurd move The stock should have a skull and crossbones at Fidelity. Just praying for more borrow to open up. Target price - $6 fast
— Citron Research (@CitronResearch) October 2, 2018
The Maryland-based 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.
READ: India Globalization Capital enters CBD-infused energy drinks market, shares jolted
IGC shares surged last week after announcing it would be moving into the cannabis beverage market, signing distribution and partnership agreement for a line of hemp and CBD-infused energy drinks. IGC did not name the company it will partner with in its press release and did not respond to Proactive Investors’ multiple requests for comment.
The plot thickens as a Twitter user pointed out that by looking up the address listed on the company’s 10-K filing using Google’s Street View, it shows a photo from September 2017 of Arbol House, a child care center that the search engine lists as permanently closed.
$IGC THIS is a photo of IGC's Corporate Headquarters per Google Street View, taken Sept 2017. See address as listed on their 2017 10K filed with the SEC attached. $460MM market cap. Buyer beware..........
Someone please correct if this is innacurate. pic.twitter.com/fD1RpbYVp9
— Joe Hogan (@Hogie100) October 2, 2018
Shares of IGC soared as much as 60% before pulling back to record 40% gains to $12.60 in Tuesday afternoon trading.