(Alliance News) - Highlands Natural Resources PLC on Friday said it has signed a two-year cannabidiol supply deal with Cellulac PLC.
Shares in Highlands were up 12% at 7.52 pence in mid day trading in London.
Highlands owns Zoertic, a CBD operation in Colorado. The natural resources firm said its CBD is derived from hemp, has less than 0.2% THC, and is "grown under quality-controlled conditions".
Ultimately, the CBD is to be infused into a range of skincare and wound care products.
The Cellulac deal will provide for Highlands' CBD to be converted into medical-grade CBD before its its submitted to 9.4% Cellulac owner Integumen PLC's Labskin test facilities to be infused.
Highlands Chief Executive Gerard Brandon said: "We are delighted to have entered into an agreement with Highlands. To satisfy regulatory authorities in multiple jurisdictions, it is necessary to identify the origin of each plant and confirm the supervised growth from seed, extraction and shipment. The CBD market is still evolving, so it is imperative that any CBD infused treatments in wound care and skin care are subject to the highest testing standards, scientific verification and validation prior to product launch."
On Monday, Integumen announced the expansion of its Wound pHase division to include CBD-infused dressings y extending its agreement with Cellulac.
The licence technology agreement between the companies will now include refining "medical grade hemp-derived CBD for infused wound dressings" as part of a collaboration with the University of Limerick and the Research Centre for Resource Efficiency, which is backed by the Irish government.
Shares in Integumen were down 4.1% at 1.76 pence on Friday in London.