Wednesday, June 29, 2022

Hemp Inc (OTCMKTS:HEMP) Bounces on Potential CBD Pivot

Hemp Inc (OTCMKTS:HEMP) is a micro-cap stock that has started to garner attention as the stock bounces up the chart. The key catalyst of late is the company’s act of bringing online its hemp processing facility. Hemp Inc has also been trying to get mileage with investors on its purchase of what it calls a “NuAxon Tech CO2 Supercritical Extractor”, which is obviously quite an elaborate name for something that apparently is supposed to take this company into the CBD oil space. The latest announcement is that its NuAxon Tech CO2 Supercritical Extractor has officially launched and is in its first phase of operation.
According to the release, “the company previously purchased the NuAxon Tech Industrial CO2 Supercritical Extractor from NuAxon BioScience, manufacturer and the producer of the world class, large capacity CO2 Supercritical Extraction equipment as part of a joint venture with Freedom Leaf, Inc. (OTCQB:FRLF), NuAxon’s global exclusive distributor for the cannabis/hemp industry. After thorough testing and debugging, corporate executives are now commencing their “hemp oil extraction infrastructure,” one of the company’s current four underlying industrial hemp infrastructure components.”
Hemp Inc (OTCMKTS:HEMP) was founded in 2008. The company’s information is somewhat erratic and difficult to parse through – a bit like its CEO.
However, we can get a broad idea of the goals and operations from their materials. But some of this information, particularly with this company, needs to be taken with a grain of salt.
As they frame the message, the company’s long-term goal is “to be the leader in the industrial hemp industry in America”. That goal is no doubt advanced further with the onlining of its processing facility.
Hemp Inc understands its mission to be a provider of “green solutions that help make the world a better place to live. We support products that are eco-friendly, organic, healthy, and solutions that replace many petroleum-based products.”
“Hemp Inc.’s wholly owned subsidiary Industrial Hemp Manufacturing, LLC purchased the largest decortication plant in North America, which is located in Spring Hope, North Carolina. The plant is housed in a 70,000,000 square foot warehouse on 9 acres. The company will start producing fiber, loss circulation materials (LCM) and absorbents from kenaf and later from hemp.”
That narrative continues forward to include the concept that “Hemp, Inc. will produce a product for drilling rigs called “lost circulation material” (LCM), which is used for maintaining the seals when drilling for water, oil, gas, and any other liquid or gas. This product alone is capable of producing millions of dollars in revenue, since some of the largest oil companies in the world will be our primary customers.”
“Eventually, the company will produce fiber materials for the paper and fabric industries, and other industries that utilize materials from hemp to make products such as plastics, building materials, health and beauty related products and more.” In other words, the concept of “diversified applications for hemp as an industrial material” is the paramount idea.
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As noted above, this has been an interesting and volatile play since the company announced that it was bringing its hemp processing plant online. The company is now possibly moving into CBD oil production with its specialty equipment, or so recent press releases suggest.
David Schmitt, COO of Hemp, Inc.’s wholly owned subsidiary Industrial Hemp Manufacturing, LLC, said, “I was extremely pleased with NuAxon BioScience. They not only delivered a superior product but did an outstanding job guiding our team through the testing and debugging phase. Now, we are proud to announce that the NuAxon Tech CO2 Supercritical Extractor is running like clockwork. From the purchase of it, building, delivery, installation and commissioning… it is perfect! There were only a few very, very minor glitches that were resolved.”
Traders will note 45% added to share values of the company over the past month of action, a bounce that has taken root amid largely bearish action over the larger time frame. That said, HEMP has a history of dramatic rallies. Moreover, the listing has witnessed a pop in interest, as transaction volume levels have recently pushed just under 110% beyond what we have been seeing over the larger time frame.
Earning a current market cap value of $19M, Hemp Inc reports about $469K in cash on the books, which is balanced by about $7.5M in debt – most of it booked as long-term obligations. The company has very nominal revenues at this point – a fact which new investors are betting will be changing in the very near future. You can bet we will update this one again as new information comes into view. For continuing coverage on shares of $HEMP stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next breakout pick!
Disclosure: We hold no position in $HEMP, either long or short, and we have not been compensated for this article.

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