Delisted shares are the snakes of investing. Investors/traders beware the NYSE American stock exchange is zeroing-in on what they call “dubious pot stocks”. India Globalization Capital Inc., or IGC has come under fire.
IGC will become delisted shares, according to NYSE spokesperson
A spokesperson for the NYSE said October 29 that IGC’s common stock would be suspended immediately and the exchange regulators are initiating a process to delist the company’s shares. IGC is going to be delisted shares because its activities are “problematical”.
IGC “substantially discontinued the business that is conducted at the time it was listed or admitted to trading, and has become engaged in ventures or promotions which have not developed to a commercial stage or the success of which is problematical” according to an NYSE press release.
IGC recently announced a plan to sell drinks spiked with CBD, which is derived from cannabis, helped push IGC stock higher. In fact, IGC was up until recently the darling of pot stocks rocketed 1,000% in three months.
Since NYSE press release that IGC is soon to become delisted shares that blew the tracks off the company’s stocks
As Darren Winters explains, warning signs came following an IGC press release announcing the company’s plan for CBD-infused drinks. IGC indicated that it will work with a manufacturer in Malaysia, but Malaysia has a mandatory death sentence for cannabis possession and has no medical-marijuana program.
“Marijuana or any form of products including CBD oil is illegal in Malaysia,” Erny Sabrina Mohd Noor, counselor for agriculture at the Malaysian Embassy in Washington, D.C., told MarketWatch.
IGC also has a history of cashing in on trends and releasing press releases which highlight those business-plan shifts. IGC claims to be working on treatments for serious diseases including Alzheimer’s and Parkinson’s, as well as anxiety and sleep disorders. However, regulatory filings reveal that IGC assigned only $150,000 a year to research and development and none to clinical studies.
IGC has been targeted the exchange’s regulators to become delisted shares
“The company has engaged in operations which, in the opinion of the exchange, are contrary to the public interest” so it was necessary and appropriate for the protection of investors to immediately suspend trading in the Company’s common stock,” said the NYSE press release.
NYSE American is currently applying to the Securities and Exchange Commission (SEC) to delist the Company’s common stock. Following NYSE application to the SEC to delisted shares of IGC the entire pot stock sector is down, particularly those pot stocks aiming to sell CBD new age drinks.
NYSE’s latest move to make IGC delisted shares underscores two important points for investors, always do your due diligence before investing. Moreover, don’t underestimate the power of lobby groups.