Iodine producer Iofina PLC (LON:IOF) shares jumped on Thursday after the firm revealed 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