What Lies Ahead for Hemp Inc (OTCMKTS:HEMP)

What Lies Ahead for Hemp Inc (OTCMKTS:HEMP)


As we noted in a recent piece, Hemp Inc (OTCMKTS:HEMP) has been ripping higher as new legislation opens up further value for the company’s prior investments. To wit: as the company just announced, the 2018 Farm Bill has passed in both the House and Senate and is expected to be signed into law by the U.S. President before the end of this year.

According to the release, the measure easily passed the lower chamber of the House by a 369-47 vote. The legislation, which passed the Senate in an 87-13 vote on Tuesday, allows for farm subsidies and has language that federally legalizes industrial hemp production.

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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As noted above, HEMP just announced what we all know from major press reports: the 2018 Farm Bill has passed in both the House and Senate, and is expected to be signed into law by the U.S. President before the end of this year.

In all, the chart shows 57% tacked on to share pricing for the company in the past month. Furthermore, the stock has benefitted from a jump in recent trading volume to the tune of just shy of 240% beyond its prior sustained average level.

“This is a historic decision for our nation,” said Hemp, Inc. CEO Bruce Perlowin. “Our company had the foresight to begin research granted in the 2014 Farm Bill, and have been awaiting progress on the 2018 Farm Bill for quite some time. Since our company has been operational in multiple states over the years, providing the necessary infrastructure for farmers to maximize their output, we know that this legislation will benefit local economies tremendously.”

At this time, carrying a capital value in the market of $28.58M, HEMP has a store ($1.4M) of cash on the books, which is balanced by about $1M in total current liabilities. One should also note that debt has been growing over recent quarters. HEMP is pulling in trailing 12-month revenues of $400K. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 248.3%. 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.

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