IofinaEX

Established in 2019, IofinaEX, is now fully licensed to process hemp in the state of Kentucky and the Company is exploring the isolation of specialty chemical products from hemp.

Since the 2018 Agriculture Improvement Act (“2018 Farm Bill”) legalised the cultivation of hemp at the federal level in the USA, the market for products derived from hemp has rapidly expanded. The global hemp market is projected to surpass US$26 billion by 2025[1].

Iofina believes that the positive regulatory shift towards hemp derived products is a business opportunity which may allow the Group to use its specialty chemical expertise to incorporate hemp derived compounds into its existing portfolio of specialty chemical products. Research and isolation of CBD, full spectrum CBD oils, and other cannabinoids is underway at the Group’s chemical facility in Kentucky, USA.

In November 2019, Iofina entered into a Joint Venture agreement with Organic Vines OP LLC, a feminised hemp seed production and genetics company. The Joint Venture will allow IofinaEX to potentially capitalise on “seed-to-sale” solutions in international markets. The Joint Venture leased and operated a state-of-the-art climate and light controlled greenhouse facility near Denver, Colorado, and produced high quality, feminised, organic certified hemp seeds. This aligns with the Group’s business strategy to process and develop products derived from hemp.

(1)According to Research and Markets: https://bit.ly/2SwUdU6