India Globalization Capital (IGC) Marijuana Stock Soars with CBD-infused Cannabis Drinks News in Canada

The SEC recently compared cryptocurrencies to cannabis and attached an investor warning alert. Here is a perfectly good reason as to what they are hinting at all the way through.

Cannabis Stocks Surging On News Of CBD-Infused Drinks as Canada Prepares to Legalize Nationwide On October 17

As Canada prepares to legalize marijuana on October 17, cannabis stocks are surging after news about CBD-infused energy drinks. Cannabis stocks swelled on Monday on growing excitement over energy drinks infused with cannabidiol (CBD).

Leading the way was India Globalization Capital, Inc, which rose 28% on Monday. Last Friday, Maryland-based India Globalization gained 27% when it announced plans to launch drinks infused with CBD.

The overall cannabis sector has been on a tear throughout 2018. After experiencing a surge in 2017, cannabis stocks quieted down in the first half of 2018 before going on a tear in the leadup to legalization across Canada on October 17. Canada is set to become the first developed country to fully legalize recreational cannabis nationwide.

Publicly-traded Canadian cannabis companies have surged with growth over the last few months. A quick Google search for any major cannabis stock will reveal a flurry of partnerships, announcements, and production and supply agreements across the industry. It’s expected to be a multibillion-dollar market. Average retail investors are seeing gains similar to crypto.

The SEC Issues a Warning About the Dangers of Pot Stock Investing

Despite the euphoria across the pot stocks market, the SEC has issued a statement warning investors about companies that offer high returns on investments.

Many amateur investors have heard stories about ordinary people generating huge returns from the pot stock market. While many of these returns are legitimate, others are fueled by pump-and-dump schemes or market manipulation – similar to what we’ve seen in the crypto market.

Here’s what the United States Securities and Exchange Commission had to say about the issue in their warning:

“Fraudsters may manipulate stock prices (for example, causing them to rise or fall dramatically) by spreading false and misleading information about a company. Microcap stocks, some of which are penny stocks and/or nanocap stocks, may be more susceptible to market manipulation than stocks of larger companies.”

Despite the warning, investors continue to get excited about the possibility of CBD-infused energy drinks and other innovative cannabis-related products. Cannabidiol, or CBD, is a non-psychoactive component within marijuana purported to have various health benefits. CBD supplements have been used to treat anxiety, for example, and promising research has linked CBD with reduced seizure risk in children.

The beverage industry has shown particular interest in cannabidiol. It could be used to give energy drinks an added “health” boost, for example. Big soda companies are experimenting with mixing CBD with their beverages.

Beer and alcohol manufacturers have also expressed interest in CBD. A growing number of people are replacing alcohol consumption with cannabis. Alcohol manufacturers may be able to stay ahead of the curve by offering alcoholic and non-alcoholic beverages infused with CBD.

American Regulators Unsure How to Approach Cannabis

An announcement from the DEA pushed pot stocks even higher last week when the agency announced that it now places FDA-approved CBD drugs in the “Schedule V” category, which means they have the lowest potential for abuse. The Schedule V category of drugs includes over-the-counter treatments for diarrhea and cough suppressants.

Cannabis itself, however, remains a Schedule I drug in the United States, making it equivalent to heroin and LSD countrywide – even as certain states have fully legalized recreational use of the drug.

Cannabis’s status as a Schedule I drug has hampered its research in the United States. Research centers struggle to investigate the purported health benefits of cannabis – including components like CBD – because of its status.

Canada, meanwhile, has given itself a valuable first-mover advantage. With cannabis set to be legalized across the country on October 17, major cannabis companies like Tilray, Aurora, Canopy Growth Corp, Valens, and Maricann are surging nationwide – fueled by CBD-infused energy drinks and other innovations.

What do you guys think? Do cryptocurrency and cannabis stocks have more in common than we think?

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide