NYSE "Cannabis" Company India Globalization Reports Earnings

If you’ve ever watched the movie Ironman, there’s a scene where Jim Cramer talks about Tony Stark’s company on Mad Money saying, “It’s a weapons company that doesn’t make weapons.” That’s basically what  India Globalization Capital Inc. (IGC) is – a cannabis company that doesn’t sell cannabis and is listed on the New York Stock Exchange (ICE).

The company only books revenue from its legacy business of trading commodities and heavy equipment rental. For the three months ending September 30, this was $811,000. The net loss for the quarter was $858,000. There is no revenue from cannabis products at this time.

The company says that its “focus is to develop and commercial cannabinoid-based alternative therapies for indications such as Alzheimer’s disease, Parkinson’s disease, and pain. Our flagship product Hyalolex is not a U.S. Food and Drug Administration (“FDA”) approved pharmaceutical product. The commercialization of Hyalolextm has commenced and we expect revenue in the fiscal year 2019, though there can be no assurance as to the amount of such revenue.”

The company has filed for patents for its hemp-oil-CBD-infused energy drink. The filings read, “The Company cannot guarantee that such patent filings will result in a successful registration with the USPTO.”

The company took a $1.8 million loan from Bricoleur back in 2009 and has been paying it back with stock shares. The company asked shareholders last year to give Bricoleur more shares, but the request was rejected. On May 2, 2018, IGC filed a lawsuit in the Circuit Court for Montgomery County, Maryland, seeking a declaratory judgment that the shares issued to Bricoleur by the Company represent payment on the loan and damages for improper lending practices under Maryland law. The lawsuit is currently pending.

The company is headquartered in India but has offices in Washington and Maryland. “During the quarter ended September 30, 2018, the total rent paid to the affiliates (of the CEO) was $13,500 for the office space (and administrative services) in Maryland and $18,300 for the facilities in Washington State.” Ram Mukunda is the President and Chief Executive Officer.

The stock has dropped 11% in early trading to sell at $4.66.

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