HempAmericana Inc (OTCMKTS:HMPQ) is a penny stock that just went into orbit to close out the week. Shares of HempAmericana had been basing along in a sideways range for most of the past 3 months before ripping higher. The principal catalyst appears to be the company’s announcement that it has been selected to be the first investment offered on a new and exciting Crowd Funding site designed exclusively for qualified Reg A offerings.
According to the release, Minivest, www.minivest.com is an innovative crowdfunding Portal that grants access to exclusive investments in microcap issuers, including publicly traded companies. HempAmericana will be the first investment to go live on the website with an initial allocation of $500,000 in its Qualified Tier 1 Reg A offering through the Minivest portal.
HempAmericana Inc (OTCMKTS:HMPQ) bills itself as a company that researches, develops and sells products made of industrial hemp. The Company also carries other non-hemp based products but intends to focus primarily on the potential for hemp.
At this time the Company’s main product is its brand of hemp based rolling papers known as “Rolling Thunders” that are to be used for the smoking of tobacco and other legal substances.
In essence, anything that can be made with plastic can be made with industrial hemp and HempAmericana plans to fill the growing need and demand for hemp based products within the United States. The company also intends to explore other possible business avenues relating to the legal use of the Cannabis plant.
According to company materials, “HempAmericana is currently in the rolling paper and CBD oil business using the brand name Weed Got Oil. Search Rolling Thunders hemp papers on YouTube for a product demonstration of the Company’s papers. The company owns an extraction machine and now plans to become a leader in the CBD oil market by establishing three laboratories for the extraction and research of the oils contained in the hemp plant. HempAmericana also researches, develops and sells products made of industrial hemp.”
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As noted above, the company just came out with news that it has been selected to be the first investment offered on a “new and exciting Crowd Funding site” called Minivest that has apparently been designed exclusively for qualified Reg A offerings. With no cash currently on the books and a solid half-million bucks of debt, it’s no wonder the market would take this as potentially important news.
According to the release, “the offering will be available to the public, both institutional and retail participation is welcome. Due to Blue Sky Laws, HempAmericana will only accept subscriptions from New York based investors at this time. In the event the initial raise is successful and allocation is over-subscribed, the company will consider a subsequent offering with additional Blue Sky approvals. Minivest is partnered with FundAmerica, an SEC and FINRA registered broker dealer to complete the transfer of funds and comply with state and federal regulations.”
Salvador Rosillo, HempAmericana’s CEO stated, “We are excited to be selected as the first company featured on Minivest!” He further stated, “Crowd funding tends to bring a diverse group of investors, creating a stronger shareholder base with long term support. As a small team, we look forward to the additional support from Minivest to help us increase the velocity at which we can raise operating capital. The investment process will be streamlined so that we can focus as much time on achieving the milestones announced earlier in the year. Minivest is not a broker dealer and takes no commission on capital raised. With the exception of minimal maintenance fees, the company will receive virtually all the funds raised through the website.”
At this time, carrying a capital value in the market of $8.78M, HempAmericana has virtually no cash on the books, which is balanced by about $500K in total current liabilities. The company is pre-revenue at this point. We will update the story again soon as further details emerge. For continuing coverage on shares of $HMPQ stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next breakout stock pick!
Disclosure: We hold no position in $HMPQ, either long or short, and we have not been compensated for this article.