With the advent of the age marked by the signing of the 2018 Farm Bill, one might assume that a company called Hemp Inc (OTCMKTS:HEMP) would be one of the big winners in early 2019. However, interestingly enough, that hasn’t been the case for reasons we have discussed ad nauseam in our prior pieces. To attempt to turn things around, the company just announced that the company has entered into an agreement with Digipath, Inc. (OTCQB: DIGP), a cannabis testing laboratory, to oversee and manage the construction and build-out of a hemp potency-testing laboratory in North Carolina, Oregon, and Arizona.
According to the release, Digipath Labs will be the in-house, third-party testing company for all of Hemp, Inc.’s products. “Digipath was the logical choice to create and operate a stand-alone laboratory at each of our hemp production facilities,” said Bruce Perlowin, CEO of Hemp, Inc. “Digipath is a leader in cannabis, hemp, soil, water, mold, etc. best practices and continues to provide cutting edge testing services for this industry. These new Digipath labs will not only test all of our hemp products but will also be available for all of the local hemp farmers in each area to do their own required testing.”
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 that the company has entered into an agreement with Digipath, Inc. (OTCQB: DIGP), a cannabis testing laboratory, to oversee and manage the construction and build-out of a hemp potency-testing laboratory in North Carolina, Oregon, and Arizona.
Traders will note flat action for shareholders of the listing during the trailing week. In addition, the stock has registered increased average transaction volume recently, with the past month seeing 12% over what the stock has registered over the longer term.
Todd Denkin, CEO of Digipath, Inc. (OTCQB: DIGP) said, “This opportunity to align with Hemp, Inc. allows us to expand our footprint within their sophisticated hemp business locations. We are thrilled to provide our expertise to support small family farms and be on the forefront of the hemp revolution that is sweeping America.”
Earning a current market cap value of $21.41M, HEMP has a reserve ($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%. 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.