Imperial Brands PLC (LON:IMB) said its subsidiary, Imperial Brands Ventures, will invest in a British biotech company researching how marijuana can be used in medicine.
The FTSE 100-tobacco company did not disclose the size of the stake it would be taking in the company, Oxford Cannabinoid Technologies, but the investment follows a previous move last year when Imperial appointed an expert in medicinal cannabis to its board of directors.
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The announcement also comes a day after the US Food and Drug Administration (FDA) approved the use of a cannabis-based drug for the first time, a move seen as opening floodgates for more research into the medicinal properties of cannabis.
The investment forms part of a wider trend among tobacco companies, who are trying to diversify their product ranges outside of traditional tobacco products such as cigarettes in order to maintain market share.
In mid-afternoon trading Thursday, Imperial Brands shares were up 1.6% at 2,779p.