The move to legalize adult-use cannabis in Canada has perhaps drawn attention away from another very important legislative trajectory – this one in the US and related to industrial hemp – which stands to potentially reshape the prospects of companies in the space like Hemp Inc (OTCMKTS:HEMP). For example, the company just announced that it applauds California’s commitment to agriculture, industrial hemp specifically, with the passing of SB 1409.
According to the release, “The new bill, which will go into effect on January 1, 2019, removes the previous requirement that industrial hemp seed cultivators be certified on or before January 1, 2013, finally opening the door for new cultivators to enter the market. This will “unleash a dramatic expansion of hemp farming and hemp businesses” in the nation’s largest state and as a global leader in the industrial hemp industry, with the largest multipurpose industrial hemp processing facility in the western hemisphere, Hemp, Inc. stands to gain an enormous amount of business opportunities in the Golden State.”
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.
Find out when $HEMP reaches critical levels. Subscribe to OracleDispatch.com Right Now by entering your Email in the box below.
As noted above, HEMP just announced that it applauds California’s commitment to agriculture, industrial hemp specifically, with the passing of SB 1409. We’ve witnessed flat action in share values of the company over the past week of action, a bounce that has taken root amid largely bearish action over the larger time frame. What’s more, the stock has seen interest climb, with an increase in recent trading volume of 12% beyond its prior sustained average level.
“This Bill will finally allow farmers in California to partake in this lucrative industry on a broad scale and I applaud Governor Jerry Brown for taking the proactive steps necessary to facilitate the growth of California’s industrial hemp industry,” said Hemp, Inc. CEO, Bruce Perlowin.
“The immense opportunity represented by the state’s world-class economy combined with its ideal growing conditions is sure to convince many farmers to switch to hemp. Our new west-coast hemp processing facility in Medford, Oregon, stands to be an excellent resource for all of the new farmers entering the industry as laws continue to evolve. We are also continuing to scout new locations across the country to open additional hemp processing centers.”
Earning a current market cap value of $21.57M, HEMP has a reserve ($661K) of cash on the books, which is balanced by about $145K in total current liabilities. HEMP is pulling in trailing 12-month revenues of $286K. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 401.6%. We will update the story again soon as developments 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.