The AIM-listed group has invested US$900,000 into Organic Vines as part of a US$1.9mln fundraising effort to support the company’s first grow cycle at its 240,000 square foot greenhouse facility in Denver, Colorado, which is capable of producing over 50mln hemp seeds per cycle.
The investment, made through a non-voting equity preference share, will give Iofina the first call on returns made the grow cycle of up to three times the initial investment. The company is expecting to turn a profit of US$1.8mln by mid-2020.
While the investment is a “one-off opportunity” and will dissolve after returns are achieved, Iofina said it will investigate further ventures with Organic Vines to benefit its subsidiary, IofinaEX, which is focused on developing products derived from hemp, such as cannabidiol (CBD).
“We anticipate this strategic investment to be the first of many steps for IofinaEX to thrive in this rapidly growing hemp market”, said Iofina’s president and chief executive, Tom Becker.