Iofina climbs after wading into CBD oil production

13th Jun 2019 13:45

(Sharecast News) - Iofina shares jumped on Thursday after the iodine producer said it plans to move into the production of cannabidiol (CBD) oils and industrial hemp. The AIM-traded company said the Kentucky Department of Agriculture had given conditional approval for its hemp processor/handler license application. It added that it would set a new unit for the venture called IofinaEX.Iofina will not be allowed to process hemp until free payments and a "scheduled orientation" are complete, expected in July.Chief executive Tom Becker said: ''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. Iofina's expertise in speciality chemicals makes the new venture a suitable addition to the Iofina Group."Iofina's shares were up 8.29% at 17.30p at 1308 BST.