29/04/2015 - 14:50

Odin to leave resources for hemp

29/04/2015 - 14:50

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Oil and gas explorer Odin Energy has struck an agreement to acquire a local cannabis and hemp 'aggregator', making it the third WA-based listed company to explore the cannabis sector in recent months.

Odin to leave resources for hemp

Oil and gas explorer Odin Energy has struck an agreement to acquire a local cannabis and hemp 'aggregator', making it the third WA-based listed company to explore the cannabis sector in recent months.

Odin said it would commence due diligence on the business activities of The Hemp Corporation, which currently has 20 hectares of hemp planted as a trial in Gingin.

Investors responded well to the news, with Odin shares surging by 300 per cent to 0.4 cents a share at 2pm.

The deal is subject to Odin being satisfied with its findings following the due diligence process and shareholder approval from both parties.

“THC’s near-term objective is to promote one of the most sustainable and robust agricultural products available, whilst creating a commercial platform that will be able to achieve substantial near-term revenue in this rapidly consolidating industry,” Odin said in a statement.

Odin is the third Perth-based company to announce plans to tap into the cannabis and hemp market, alongside medical marijuana company Phytotech Medical which listed on the ASX earlier this year after completing its $5.9 million IPO, and Capital Mining which announced plans to acquire US-based hemp and cannabinoid company Nutrawerx last month.  

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