Iofina to move into production of CBD oil after Kentucky approves hemp licence

Iodine producer Iofina PLC (LON:IOF) plans to move into the production of cannabidiol (CBD) oils after receiving conditional approval for a licence to process hemp in Kentucky, US.

The company expects to complete the payment of fees and scheduled orientation in mid-July, allowing it to begin processing hemp.

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The group has created a new subsidiary called IofinaEX that will produce CBD oils.

Iofina said it would use its speciality chemical knowledge and apply it to the extraction and isolation of purified CBD products.

The firm said the 2018 Agriculture Improvement Act, which made the cultivation of hemp legal at a federal level, has opened up new opportunities for the CBD market in the US.

“The directors are determined to explore the isolation of CBD oil and other valuable products from hemp, a market which is currently underdeveloped but rapidly growing,” said chief executive and president, Tom Becker.

He added: “The conditional approval for our handler/processor License in Kentucky is an important step forward as we plan to execute the project at IofinaEX, and we look forward to updating the market as we develop this subsidiary further.”

In Kentucky, CBD – the non-psychoactive compound of a cannabis plant – is legal.

However, tetrahydrocannabinol, or THC, which is the psychoactive compound that gets a user high is not.

Story by ProactiveInvestors