IGC’s stock tumbles after near 6-fold run up in 5 days as share offering completed

IGC’s stock tumbles after near 6-fold run up in 5 days as share offering completed

Shares of India Globalization Capital Inc. IGC, +44.12% tumbled 14% in premarket trade Wednesday, pulling back from a near six-fold run up over the previous five sessions, after the company that recently entered the cannabidiol-infused energy drink market said it completed a 5.65 million share equity offering. IGC said late Tuesday it completed its at-the-market offering, which commenced Sept. 25, at a weighted average price of $5.30 to raise $30.0 million. With the offering, the share outstanding increased by about 18% to 36.69 million shares. The company plans to use the proceeds from the offering for the sales and marketing of its products. The stock had rocketed 458% amid a five-session win streak through Tuesday. The stock has run up 2,571% over the past three months, while the ETFMG Alternative Harvest ETF MJ, -5.01% has climbed 31% and the S&P 500 SPX, -0.04% has gained 7.8%.

Have breaking news sent to your inbox. Subscribe to MarketWatch’s free Bulletin emails. Sign up here.

Related posts