India Globalization Capital Inc. (NYSE: IGC) Enters the Cannabis Space for Alzheimer’s Treatment

India Globalization Capital Inc. (NYSE: IGC) develops intellectual property for the treatment of life altering or life threatening conditions, through its research on phytocannabinoid therapies, in the United States. The Firm also manufactures farming facilities for leasing. In Malaysia, the Company develops and manages residential and commercial real estate.

Presently IGC is focusing more on development of cannabis-based therapies to treat cachexia, nausea, vomiting, Parkinson’s disease, Alzheimer’s disease, epilepsy, PTSD and other life altering conditions in humans and animals. In support of this mission, IGC has assembled a portfolio of patent filings for its phytocannabinoid-based treatments.


During June 2017, IGC announced that it has entered into a definitive license agreement with the University of South Florida making it an exclusive licensee of the U.S. patent filing entitled “THC as a Potential Therapeutic Agent for Alzheimer’s Disease.” By acquiring this patent filing, IGC is protecting a potential cannabis-based blockbuster treatment for America’s most expensive disease.


In 2017 Medicare and Medicaid alone are expected to spend $175 billion on patients diagnosed with Alzheimer’s. There are currently over 5.3 million Americans with Alzheimer’s (AD). The cost of Alzheimer’s has increased significantly and is expected to continue to surge higher. The number of patients is expected to double over the next 20 years and the direct costs are expected to exceed $450 billion per year in the next 12 years. There is still no accepted cure for Alzheimer’s disease.


As per management, securing this licensing agreement represents a major inflection point for IGC as it now look to prepare several key products for clinical trials. Furthermore, the company is putting the finishing touches on its products, which may include filing additional patents, pursuing clinical trials for its Alzheimer’s product and others this year. IGC also expects in the near future to share some data that supports its formulation, the patent application, and the transition to clinical trials as well as details of commercialization initiatives.


India Globalization Capital Inc. announced financial results for the third quarter ended December 31, 2016 on Feb 21st. Revenue for Q3 was $250,000 compared to $1,085,000 for same period in 2016. Revenue was primarily generated by renting heavy equipment and managing construction of the hotel in Genting, Malaysia.  IGC, reported a net loss of $111,000 and EPS loss of $0.00, compared to $403,000 and $0.02 for Q3 2016.  The improved profitability is attributable to Management’s efforts to focus on developing cannabis-based therapies, and by realization of cumulative previously deferred foreign exchange gains. IGC is scheduled to release next quarter earnings on July, 13 2017.

About the Company: India Globalization Capital, Inc. (“IGC”), a Maryland corporation, was organized on April 29, 2005 formed for the purpose of acquiring one or more businesses with operations primarily in India, Hong Kong, China and now Malaysia, through a merger, capital stock exchange, asset acquisition or other similar business combination or acquisition.

On March 8, 2006, the Company completed an initial public offering. IGC is headquartered in the United States. The operations of IGC are based in the USA, India, and Malaysia. In the United States, throughout its research on phytocannabinoid-based therapies, IGC develop intellectual property for the treatment of life altering or life threatening conditions; for the purpose of leasing, it also build state-of-the art farming facilities. In India, it leases heavy equipment and in Malaysia, develops manages and sells residential and commercial real estate.

Major clinical pipeline that is Readying for Medical Trials:

  1. Natrinol is a natural substitute for Marinol, or synthetic THC. This product is for relieving nausea, vomiting and appetite stimulation in patients with AIDS and Cancer.
  2. Caesafinuses combination therapy to alleviate seizures in dogs and cats.
  3. Serosapse addresses several end points in Parkinson’s disease including Rapid Eye Movement (REM) sleep disorder, anxiety, and dyskinesia.
  4. Hyalolex is aimed at reducing the buildup of beta-amyloid in Alzheimer’s disease.


The Company’s development pipeline:

Recent Highlights: The Company recently acquired exclusive rights to THC-based treatment for Alzheimer’s disease.


THC has several known molecular pathways by which it interacts with the human body, including binding to the CB1 receptor, anti-oxidative effects, and others. The patent filing claims discovery of a new pathway: low doses of THC bind to amyloid beta plaques and prevent those plaques from aggregating on neurons, which is what occurs in Alzheimer’s disease and causes cognitive decline.


If the patent is granted and proven, IGC will own a significant therapeutic pathway by which THC interacts with the human body.


***Get our small cap profiles, special situation and watch alerts in real time. We are now offering our VIP – SMS/text alert service for free, simply text the word “Traders” to the phone number “25827” from your cell phone***


In the past few years, research around cannabis has grown.  Clinical trials have begun to reflect that side effects of THC and other cannabis products are tolerable to patients and reduce with time. There is trial data highlighting that, at proper doses, cannabinoids have positive side effects for Alzheimer’s patients, such as a reductions in delusions and mood disorders.


The research on the effect of THC for Alzheimer’s patients’ cognitive function is also validated in two papers. One, published by the Salk Institute in 2016, validated the University of South Florida’s finding that low doses of THC break up amyloid-beta plaques on neuronsAnother, published this year in Nature, confirmed the therapeutic promise, showing that cognitive function was restored in aged mice, which were provided low doses of THC.


Therefore, the pathway has incredible potential in treating Alzheimer’s disease and is now a burgeoning research area. Acquiring these patent further supports IGC in protecting its proprietary formulation IGC-AD1, which includes low-doses of THC and is intended to disrupt the buildup of amyloid beta plaques and alleviate some of the worst symptoms of Alzheimer’s disease.


The company is aggressively focusing on assembling a strong development team and a primary pipeline of four major products addressing large markets and possible blockbuster indications utilizing cannabis-based therapies.



Outlook over the near to medium term: In 2017 company’s key goal is to accelerate the development of cannabis-based therapy portfolio to support key indications such as Pain, Seizures, Cachexia, PTSD and Depression.  In tandem, it expects to initiate pre-clinical trials on IGC-501-Pain, IGC-502-Seizures and IGC-504-Cachexia.


Q3 2017 Financial Results:

Revenue for fiscal Q3 2017 was $250,000 compared to $1,085,000 for fiscal Q3 2016.  Q3 2017 revenue was primarily generated by renting heavy equipment and managing the construction of the hotel in Genting, Malaysia. Revenue decreased because the company curtailed trading activity so Management can focus on developing cannabis-based therapies.

In Q3 2017, the Company reported a net loss of $111,000 and an EPS loss of $0.00, compared to a $403,000 and $0.02 for Q3 2016.  The improved quarterly performance is attributable to Management’s efforts to focus on developing cannabis-based therapies, and by realization of cumulative previously deferred foreign exchange gains related to Ironman.

For the period ended December 31, 2016, IGC’s cash and cash equivalents along with restricted cash was approximately $744,000 and stockholders’ equity was approximately $7,540,000 compared with approximately $13,948,000 for the period ended March 31, 2016.

In Q3 2017 the reduction in stockholders’ equity was attributable to giving up control over Ironman assets.  This was previously reported by IGC on Form 8-K on January 6, 2017.  On a proforma basis IGC’s stockholders’ equity as of March 31, 2016, was approximately $6,203,000 versus actual as of December 31, 2016 of approximately $7,540,000, an increase of $1,337,000.

As per management, IGC currently has sufficient cash to continue business operations with limited expansion. The amount and timing of incremental cash requirements will depend on the progress and success of the company’s clinical development programs, regulatory and market acceptance, and the resources it devotes to research and commercialization activities.


Key risk factors and potential stock drivers:


As IGC proposes to test various aspects of THC and Alzheimer’s, with a strategy to take a cannabis-based Alzheimer’s drug to market, it might need additional funding.


Therefore, it is exposed to risk of the potential for dilution. The company is going to need incremental capital.


The favorable outcome of clinical testing and its path to FDA approvals could be a medium term trigger for IGC stock.


The company’s business risk profile is subject to significant regulatory risk. Medical marijuana/cannabis is a highly regulated and uncertain market and therefore IGC has to know how to navigate & abide by the regulations.


The company’s ability to ramp-up profitability, while sustaining its revenue growth, would be one of the key stock driver over the near to medium term. The company must regulate its development costs.


Stock Chart:


On Friday, July 7, 2017, IGC was trading at $0.41 (up 1.22%) on an average volume of 222,568 shares exchanging hands. Market capitalization is $10.96M. The current RSI is 46.02

In the past 52 weeks, shares of IGC have traded as low as $0.19 and as high as $0.80.


At $0.407, shares of IGC are trading below its 50-day moving average (MA) at $0.42 and above its 200-day MA at $0.37


The present support and resistance levels for the stock are at $0.39 & $0.43 respectively.


***Get our small cap profiles, special situation and watch alerts in real time. We are now offering our VIP – SMS/text alert service for free, simply text the word “Traders” to the phone number “25827” from your cell phone***






Traders News Source is a wholly owned subsidiary of Traders News Source LLC, herein referred to as TNS LLC.


Traders News Source has not been compensated for this report by anyone and the opinions if any are that of the author Vikas Agrawal, CFA. Author’s Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in the article.


This web site, published by TNS LLC, and is an investment newsletter that is built on the premise of assisting individual investors in learning about investing. Our goal as publishers of financial information is to provide research and analysis of investments to our subscribers. TNS LLC does not give buy or sell recommendations. We do purchase distribution rights from analyst, financial writers and bloggers for a fee that may be licensed to issue price targets and recommendations. Furthermore, we encourage you to speak to a licensed professional prior to making an investment in any type of publicly traded security.


We do sell advertising to other companies including brokerage firms, web sites, publicly traded issuers, investor relations firms, and investment publications, among others. TNS LLC makes no warranty as to the policies of these organizations, and in no way endorses their offers, services, or the content of their advertisements.


When an advertiser is a publicly traded company or a third party acting on behalf of a public company, we fully disclose all compensation in the email advertisement. Such disclosure is included in a disclosure statement in each of the advertisements sent via email.


17B Disclosure


Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The disclaimer is to be read and fully understood before using our services, joining our site or our email/blog list as well as any social networking platforms we may use.


PLEASE NOTE WELL: TNS LLC and its employees are not a Registered Investment Advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever.


Release of Liability: Through use of this website viewing or using you agree to hold TNS LLC, its operator’s owners and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. TNS LLC encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled, or is available from public sources and TNS LLC makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies. None of the materials or advertisements herein constitute offers or solicitations to purchase or sell securities of the companies profiled herein and any decision to invest in any such company or other financial decisions should not be made based upon the information provide herein. Instead TNS LLC strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D.


TNS LLC is compliant with the Can Spam Act of 2003. TNS LLC does not offer such advice or analysis, and TNS LLC further urges you to consult your own independent tax, business, financial and investment advisors. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investor’s investment may be lost or impaired due to the speculative nature of the companies profiled.


The Private Securities Litigation Reform Act of 1995 provides investors a ‘safe harbor’ in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be “forward looking statements”. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as “projects”, “foresee”, “expects”, “will”, “anticipates”, “estimates”, “believes”, “understands”, or that by statements indicating certain actions & quote; “may”, “could”, or “might” occur.


Understand there is no guarantee past performance will be indicative of future results. In preparing this publication, TNS LLC has relied upon information supplied by its customers, publicly available information and press releases which it believes to be reliable; however, such reliability cannot be guaranteed. Investors should not rely on the information contained in this website. Rather, investors should use the information contained in this website as a starting point for doing additional independent research on the featured companies. The advertisements in this website are believed to be reliable, however, TNS LLC and its owners, affiliates, subsidiaries, officers, directors, representatives and agents disclaim any liability as to the completeness or accuracy of the information contained in any advertisement and for any omissions of materials facts from such advertisement. TNS LLC is not responsible for any claims made by the companies advertised herein, nor is TNS LLC responsible for any other promotional firm, its program or its structure.