Thursday, July 7, 2022

Hemp Inc (OTCMKTS:HEMP) Key Pieces Start to Come Together

Hemp Inc (OTCMKTS:HEMP) is a penny stock that has started to garner attention as the stock bounces up the chart in the recent days after testing key support along the $0.02 level. One of the company’s recent catalysts is its announcement that South Carolina farmers can apply for licenses to grow hemp now that South Carolina has legalized industrial hemp cultivation.

According the company’s latest release, Gov. Henry McMaster signed off on the bill earlier this month. State Senator Greg Hembree said, in an article, “Any agricultural crop we can cultivate here and make a profit for our farmers, we should try.” According to the news source, the licenses in South Carolina will be “issued to growers who have passed a State Law Enforcement Division background check. The growers also have to work with an in-state research university to develop products and a market for them. And they must have a contracted buyer for the hemp.”

Hemp Inc (OTCMKTS:HEMP) was founded in 2008. The company’s profile is somewhat difficult to nail down or sum up in traditional terms – a bit like its CEO, Bruce Perlowin.

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”. The company 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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Of the move by South Caroline, CEO Perlowin commented, “Hemp, Inc.’s 70,000 square foot industrial hemp processing facility is right in North Carolina so we are ecstatic that South Carolina has joined the other states that have legalized industrial hemp within their borders. As a leader in the hemp industry, Hemp, Inc. will gladly contract with South Carolina farmers to buy most, if not all, of the hemp grown. This creates a win-win for both Hemp, Inc. and the farmers. Partnering, or joint venturing, with South Carolina’s farmers is a sound business strategy that benefits both parties.”

Recent action has seen 14% piled on for shareholders of the listing during the trailing week, a rally that has pushed up against longer standing distributive pressure in the stock.

However, this is a stock who’s past is littered with sudden rips. What’s more, the company has witnessed a pop in interest, as transaction volume levels have recently pushed 29% over the long run average.

Earning a current market cap value of $7.6M, HEMP has about $306K in cash on the books, which is balanced by about $223K in total current liabilities. The company is pre-revenue at this point. We will update the story again soon as developments transpire. 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 hot stock pick!

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