Hemp Inc (OTCMKTS:HEMP) is a penny stock in the industrial hemp space that continues to separate itself from the cannabis patch by dint of underperformance. However, one can never fault this company for its lack of ambition and narrative management. In its most recent press release, these concepts were on full display.
The company just put out an update to its shareholders ostensibly on “the booming industrial hemp industry across the globe and how it is set to stimulate the economy on a national and global scale. Bruce Perlowin, CEO of Hemp, Inc. says ramping up hemp production on American soil, in particular, will serve as a stimulus for many ancillary industries from packaging and distribution to logistics and marketing.”
Hemp Inc (OTCMKTS:HEMP) was founded in 2008. According to company information, 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.”
The narrative the company spins includes the idea that “In a forward-thinking move, 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.”
Hemp, Inc. has stated that it plans to purchase, acquire and/or joint venture with complimentary companies across various sectors of the hemp industry in an effort to “build a portfolio of synergistic businesses that will bring Hemp, Inc. cash flow, revenues, value, and position us as a leader in the industrial hemp industry.”
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“The industrial hemp industry creates a win-win for all,” says Perlowin. However, until the federal ban is lifted in the U.S., organizations and advocates continue to educate the public on hemp and its benefits.
In other words, this company update represents a whole lot of cheerleading and advocacy for the hemp agenda from Perlowin. But it was extremely light on useful company information where concrete operational benchmarks are concerned.
“There’s a definite need for industrial hemp processing/manufacturing facilities and more education. Hemp, Inc. has the infrastructure in place now to help fill both those needs. Our hemp processing facility and mill operation is the only one of its magnitude in not only North America but the entire western hemisphere with 70,000 square feet, on over 9 acres in Spring Hope, North Carolina, and we are set to start holding informational and learning seminars at The Hemp University. With the only commercial processing facility in North America, Hemp, Inc. has the capacity to process millions of pounds of hemp fibers and stalks a year,” said Perlowin.
There was one concrete update of interest in the release: “With a signed a Letter of Intent with Mullen View Farms and one with John Finch Farms in North Carolina, Hemp, Inc.’s wholly owned subsidiary, Industrial Hemp Manufacturing, in Spring Hope, NC will be growing a total of 3,000 acres of industrial hemp, this year. According to the signed LOI with Mullen View Farms, IHM will purchase 1,000 acres of raw hemp that is to be harvested at various locations throughout eastern North Carolina this year.”
Earning a current market cap value of $27.4M, HEMP has about $98K cash on the books, which must be weighed relative to roughly $173K in total current liabilities. The company has not pulled in any revenues for several quarters. We will update the story again soon as developments transpire. For continuing coverage on shares of Hemp Inc stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!