The company expects to complete the payment of fees and scheduled orientation in mid-July, allowing it to begin processing hemp.
The group has created a new subsidiary called IofinaEX that will produce CBD oils.
Iofina said it would use its speciality chemical knowledge and apply it to the extraction and isolation of purified CBD products.
The firm said the 2018 Agriculture Improvement Act, which made the cultivation of hemp legal at a federal level, has opened up new opportunities for the CBD market in the US.
â€śThe 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,â€ť said chief executive and president, Tom Becker.
He added: “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.”
FinnCap said the new CBD business, IofinaEx, is seen as a “natural fit for Iofina” both operationally and geographically, with many of the same process required in cannabinoid production as in its iodine extraction and specialty chemicals businesses.
“Itâ€™s very early days, but this is a rapidly growing market with high levels of investor interest; no bad thing,” the broker said.
In Kentucky, CBD â€“ the non-psychoactive compound of a cannabis plant â€“ is legal.
However, tetrahydrocannabinol, or THC, which is the psychoactive compound that gets a user high is not.