Unless you’ve been living under a rock for the past week, then you know a number of hemp-related names on the OTC have skyrocketed higher in response to the passage – in both the House and Senate – of the Farm Bill, one of which is HempAmericana Inc (OTCMKTS:HMPQ). Shares of the stock have more than doubled in recent days.
One interesting dimension to this story is the company’s recent announcement of the retirement of all outstanding convertible debt. According to the release, “as of the filing of the Company’s Q1 financial report (the most recent official record of outstanding convertible debt), HempAmericana had $112,500 in total convertible debt. All of that debt has now been completely retired through a recent transaction. The Company’s balance sheet now carries no secured or unsecured debt.”
HempAmericana Inc (OTCMKTS:HMPQ) bills itself as a company that researches, develops and sells products made of industrial hemp. The company also carries other non-hemp based products but intends to focus primarily on the potential for hemp.
At this time the HMPQ’s main product is its brand of hemp-based rolling papers known as “Rolling Thunders” that are to be used for the smoking of tobacco and other legal substances.
In essence, anything that can be made with plastic can be made with industrial hemp and HempAmericana plans to fill the growing need and demand for hemp-based products within the United States. The company also intends to explore other possible business avenues relating to the legal use of the Cannabis plant.
According to company materials, “HempAmericana is an emerging leader in the CBD products market. The Company owns and operates a high-capacity, state-of-the-art CBD extraction and processing facility located in Augusta, Maine. This facility is armed with a supersized supercritical CO2 extraction system, centrifugal partition chromatography refinement technology, and a mechanized fully-automated CBD bottling system. HempAmericana also owns and operates Union Farm, a high-potency CBD strain development facility located in Union, Maine. The Company’s CBD oil business uses the brand designation, “Weed Got Oil”. HempAmericana also researches, develops, and sells products made of industrial hemp, including a popular brand of hemp rolling papers marketed under the brand name, “Rolling Thunders”. See more at www.hempamericana.com”.
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As noted above, HMPQ just announced the retirement of all outstanding convertible debt.
Salvador Rosillo, HempAmericana CEO, commented, “The Micro-Cap space is dominated by large Convertible obligations. It has long been the structure of choice by many funds for capital allocation to small publicly-traded companies. However, it can result in serious dilution risk for common equity holders. I am very proud to let our shareholders know that the HempAmericana balance sheet is now completely free of this burden.”
We’ve witnessed in excess of 120% tacked on to share pricing for the company in the past month. What’s more, the stock has witnessed a pop in interest, as transaction volume levels have recently pushed approaching 570% over the long run average.
Mr. Rosillo continued, “Over the past two years, we have successfully funded the building of a first-class high-capacity CBD extraction and production facility in Augusta, Maine. And, during this process, HempAmericana shares have maintained a viable and stable share price range. Now that we have the facility fully built and in active production, and we have a clean balance sheet, investors will not have to worry about the toxic overhang of financing that process. It’s great to be free and clear, and up and running!”
Currently trading at a market capitalization of $45.12M, HMPQ has about $202k in cash on the books, which must be weighed relative to about $3.3M in total current liabilities. The company is pre-revenue at this point. We will update the story again as soon as further details emerge. Sign-up for continuing coverage on shares of $HMPQ 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 $HMPQ, either long or short, and we have not been compensated for this article.