While it has been a bit of roller coaster ride in recent action for Hemp Inc (OTCMKTS:HEMP), the company continues to make some clear progress toward expanding its operations in front of upcoming hemp-related legislation set to hit the hill in DC. In addition, the company just announced today the company has entered into a majority ownership agreement with JNV Farms LLC for an Oregon hemp cultivation and processing company in Medford.
According to the release, “As the majority owner of the hemp cultivation and processing company, Local Processing Center, Inc. (LPC), Hemp, Inc. will be able to create a pipeline of industrial hemp and hemp products in states, where legal, on the West Coast. This makes Hemp, Inc. a bi-coastal hemp processing center in America with many more Hemp Local Processing Centers planned for other areas where Hemp is being grown.”
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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According to HEMP’s most recent release, eighth-generation farmer Nicolass Vanderwey will serve as the President and CEO of LPC. Hemp, Inc. will designate the CFO of LPC. Both companies will also designate one member to LPC’s board and together those board members will serve as co-chairman of the Board.
Recent action has seen 8% piled on for shareholders of the stock during the trailing month. In addition, the listing has registered increased average transaction volume recently, with the past month seeing 40% over what the stock has registered over the longer term.
“The climate in this region is ideal for hemp cultivation,” said Vanderwey. “We expect to start generating revenue within 30 days of the first harvest, and we look forward to creating jobs and working closely with the local community to position Medford on the forefront of Oregon’s hemp industry.”
“We look forward to working with such a seasoned company such as JNV Farms,” said Hemp, Inc. CEO Bruce Perlowin. “The timing is ideal as we get closer to bringing our King of Hemp™-branded products to market, including high-end cannabidiol (CBD) hemp pre-rolls and hemp buds. JNV Farms brings decades of growing experience from overseas to the U.S. market, and with our proven track record of success at our headquarters in Spring Hope, North Carolina we are confident this agreement for Local Processing Center signals the start of a fruitful relationship that will create increased value for our shareholders.”
Currently trading at a market capitalization of $24.8M, HEMP has a chunk ($575K) of cash on the books, which is balanced by about $145K in 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 is an exciting story, and we look forward to a follow-up chapter as events transpire. 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.