Iofina Gets Thumbs Up For CBD Oil Research; Completes Open Offer (ALLISS)

(Alliance News) - Iofina PLC on Thursday announced approval in the US to explore the production ...

Alliance News 13 June, 2019 | 1:54PM
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(Alliance News) - Iofina PLC on Thursday announced approval in the US to explore the production of CBD oils, while it has also closed an open offer.

Iofina is setting up a new unit, IofinaEX Inc, to explore production of CBD oils, which are a mixture of cannabinoids including cannabidiol, as well as other uses of industrial hemp.

The Kentucky Department of Agriculture has now given conditional approval for a processor/handler licence.

Iofina cannot process hemp until free payments and a "scheduled orientation" are complete, but this should be completed in July.

Chief Executive & President 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.

"The conditional approval for our handler/processor licence 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."

Elsewhere, Iofina has raised GBP1.5 million in an open offer, first announced April. The company received acceptances from 9.5 million shares, 74% of those part of the offer.

The open offer came alongside a placing and subscription, and Iofina had originally aimed to raise GBP2.0 million in the open offer. The fundraise took place at 16 pence a share.

Iofina was trading at 17.55p a share on Thursday afternoon, up 9.9%.

By George Collard; georgecollard@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Iofina PLC 18.00 GBX 2.86 -

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