Specialists in the exploration and producers of iodine, Iofina (IOF) announced on Wednesday its investment into Organic Vines, a feminised hemp seed production and genetics firm.
Iofina’s subsidiary, IofinaEX, has invested US$900,000 into Organic Vines as part of efforts to fundraise US$1.9m to finance the firm’s first grow cycle at its greenhouse facility near Denver, Colorado.
The site, which includes four greenhouses totalling approximately 240,000 square feet, is capable of producing over 50 million certified organic hemp seeds per grow cycle to last an estimated four month course from planting to harvest.
Iofina’s investment will allow first call on returns made from this grow cycle, for up to a maximum of three times the initial investment. With a successful crop, the firm anticipates a profit on investment by mid-year 2020 totalling up to US$1.8 million, and based on current seed pricing, the Board believes that maximum return is achievable.
"As we continue to develop our hemp/CBD business, we are executing strategies to advance our plans for IofinaEX,” said President and Chief Exeucitve, Tom Becker.
Mr Becker acknowledged the investment as in-line with the firm’s strategy, with their focus in developing products derived from hemp, such as CBD.
He added, “We anticipate this strategic investment to be the first of many steps for IofinaEX to thrive in this rapidly growing hemp market, and we look forward to updating the market on further progress in due course."
The company explained the investment as “a one-off opportunity” but stated that if successful, they would explore the option to undertake further ventures with Organic Vines that would benefit IofinaEX.
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