It has been awhile since we have seen true sustained strength in shares of Hemp Inc (OTCMKTS:HEMP). But over the past few weeks, we are seeing just that. Part of it may be about the company’s share-branding around the industrial hemp theme in concert with recent affirmation of a path of legislation around that same theme that is positive for the space. But part of it is no doubt also about some other catalysts hitting the wires for the company right now.
As a case in point, HEMP just announced that its joint venture agreement with HQ Global Education, Inc. (OTC: HQGE) to plant 25 acres of industrial hemp has been doubled to 50 acres. According to the release, “Hemp, Inc. announced June 14th that it signed a contract with HQGE to plant 25 acres of industrial hemp. Per the updated agreement, Hemp, Inc. began planting seeds of industrial hemp June 27 on 50 acres next to its 85,000 square foot hemp manufacturing and processing facility in Spring Hope, North Carolina. The hemp industry is projected to grow 700% and hit $1.8 billion by 2020, according to Hemp Business Journal.”
Hemp Inc (OTCMKTS:HEMP) was founded in 2008. The company has a reputation as one of the more controversial enterprises, even by the standards of either the OTC or the cannabis patch, which certainly paints a picture.
In any case, the company is making strong strides toward reshaping its image as a legitimate emerging leadership play in the industrial hemp space.
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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Traders will note 49% piled on for shareholders of the name during the trailing month. What’s more, the listing has witnessed a pop in interest, as transaction volume levels have recently pushed 81% over what the stock has registered over the longer term.
“As Hemp, Inc. positions itself on the forefront of America’s industrial hemp revolution, we see our partnership with ‘Veteran Village Kins Community Arizona, Inc.’ being paramount in supporting the small family farm movement that we are confident will reshape the American landscape,” said Perlowin. “As we work toward getting our eco-village up and running in Arizona, we are also aggressively scouting strategic locations in other states including North Carolina, South Carolina, Florida, Georgia, Kentucky, Tennessee and West Virginia. Giving veterans and other Americans a place to learn new skills and take part in this multi-billion-dollar hemp CBD market is very exciting. It’s a big part of our mission to give back.”
Now commanding a market cap of $30.2M, HEMP has a reserve ($575K) of cash on the books, which stands against virtually no total current liabilities. HEMP is pulling in trailing 12-month revenues of $199K. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 251.5%. This may be a very interesting story and we will look forward to updating it again soon. Sign-up for continuing coverage on shares of $HEMP stock, as well as other hot stock picks, get 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.