Shares of India Globalization Capital Inc. (IGC) fell about 10% to $3.40 Friday, October 19, as the pot stock struggles for a second straight day in spite of the legalization of recreational cannabis in Canada earlier this week.
The legalization of cannabis in Canada wasn't the only bit of good news for Bethesda, Maryland-based IGC this week, as the company also announced that it is targeting a March roll out in Canada for its low-dose THC-based formulation to treat Alzheimer's disease.
"We were waiting for it to become legal. We're going to go to Canada and try to figure out how to apply to the health department in a few months," CEO Ram Mukunda told Bloomberg.
IGC has become one of the stocks people point to when suggesting that pot stocks are a bubble waiting to burst. The company's share price has jumped more than 170% over the past four weeks, rising as high as $10 a share in early October.
The pot sector was mostly higher in spite of IGC's decline in trading Friday with DAVIDsTea Inc. (DTEA) flat, CV Sciences Inc. (CVSI) climbing 1.5%, Tilray Inc. (TLRY) gaining 2.76%, and Canopy Growth Corp. (CGC) was up 2.3%.