Unquestionably, the most important story for OTC stocks over the past few weeks is the very hemp-friendly 2018 Farm Bill, and the stock that seems to have benefitted from it the most is clearly Hemp Inc (OTCMKTS:HEMP). According to its CEO, Bruce Perlowin, Hemp Inc. has spent $25 million on building its industrial hemp infrastructure ($3 million in Arizona, $20 million in North Carolina, and $2 million in Oregon). In addition, as they note, Hemp Inc. is currently “looking for joint venture partners to provide its expertise. These partnerships are designed for those who are ready to make considerably large investments in an industry primed to hit or surpass $20 billion by 2022.”
“While we won’t forget the small family farmer, these joint ventures are designed for the millionaires and billionaires of the industry and billion dollar hedge funds that are investing large amounts of money into the industrial hemp sector,” says Perlowin. “The small family farmers are just as important to us so we will help them grow hemp and everything that needs to be done in terms of processing so they can re-emerge back into the American landscape.”
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 has been a huge beneficiary of the recent signing of the 2018 Farm Bill given its big investment in hemp production infrastructure. Traders will note 58% during the past month in terms of shareholder gains in the stock. What’s more, the name has registered increased average transaction volume recently, with the past month seeing just under 240% beyond what we have been seeing over the larger time frame.
Perlowin added, “We have been working with farmers across the U.S. to provide the infrastructure needed to process hemp and have been providing educational services as well. I am proud that we had the foresight over four years ago to begin building the largest hemp processing center in the Western Hemisphere in Spring Hope, North Carolina. We have since then strategically entered new markets, which positions us on the forefront of this multi-billion dollar industry.”
Earning a current market cap value of $28.65M, HEMP has a stash ($1.4M) of cash on the books, which compares with 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.