Iofina announced it is set to explore producing and developing CBD oil and other hemp-based products on Thursday.

The company said it had received conditional approval for its Hemp Processor/Handler License Application from the Kentucky Department of Agriculture.

The will allow the company to explore the production of cannabidiol based products as part of its newly created IofinaEX subsidiary.

Explaining the decision to move into the cannabis market, Iofina cited The 2018 Agriculture Improvement Act, which legalised the cultivation of hemp at a federal level.

President and CEO Dr. Tom Becker commented: ‘‘The Directors are determined to explore the isolation of CBD oil and other valuable products from hemp, a market which is currently under developed 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 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.”

Iofina specialises in the exploration and development of Iodine.

Its operations are in the US, specifically in Kentucky, Montana, and Oklahoma.

However, the company is London-listed on the junior AIM market.

Shares in Iofina (LON:IOF) are currently +9.06% as of 13:43PM (GMT), on the back of the announcement.