Iofina climbs after wading into CBD oil production

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.