The Iowa Department of Public Health has issued a notice of intent to award the first medical cannabidiol manufacturing license in the state.

The newly formed Iowa-based company MedPharm Iowa will innovate, manufacture, and formulate medical cannabidiol, as a result of the expanded state program that allows the selling and manufacturing of CBD oil at 3% or less THC. MedPharm Iowa is owned by Dr. Chris Nelson, President and CEO of Kemin Industries, a global ingredient company headquartered in Des Moines.

State Representative and CBD proponent Jarad Klein (R) says he’s optimistic about this manufacturer, “MedPharm Iowa has some pretty strong ties to Kemin Industries out of Des Moines which not a lot of Iowans know about, but it’s a homegrown company right out of Des Moines there, but they’re all over the world nowadays. This is a company that has done amazing things with extracts from rosemary plants, marigolds, potatoes. They already are well- established in the food/healthcare industry that they’re going to be able to do some really neat things.”

Under state law there is still room for one other CBD manufacturer in the state. According to MedPharm Iowa their facility will be on the Kemin campus in Des Moines and will be investing millions of dollars into the state. According to Iowa law, MedPharm Iowa must start supplying medical cannabidiol by December 1, 2018.