Over the last couple days of action, shares of Hemp Inc (OTCMKTS:HEMP) have rebounded back to the upside after a strong break of support that got underway in late June. The bounce has repaired most of the losses but leaves the stock well under its major moving averages. Is this an opportunity given recent US Senate support for the hemp industry?
To help answer that question, the company just announced the successful development of its innovative hemp flower drying system for smokable hemp flower. According to the release, “Highly efficient, this compact proprietary hemp flower drying system is fast, drying in only 3 days as opposed to the traditional 7 days while maintaining the critical terpene profile of the product. To be unveiled at its Oregon location, Hemp, Inc. executives expect this advanced hemp flower drying system to bring in excess of $10,000,000 in revenue for the company from the Oregon 2019 harvest season.”
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 the successful development of its innovative hemp flower drying system for smokable hemp flower.
The stock has dipped and then rallied back in recent days. But the reality of the situation is that the stock is basically flat for the past week and month overall. And volume has been mostly tepid on average as well.
“As a global leader in the industrial hemp industry with extensive knowledge and a goldmine of invaluable contacts and connections, this new advanced proprietary hemp flower drying system will revolutionize the industry, catapulting Hemp, Inc. to heights we haven’t even seen yet,” says Bruce Perlowin, CEO of Hemp, Inc. “Ten million dollars in expected revenue would be quite impressive just from our Oregon operations.”
Earning a current market cap value of $13.6M, HEMP has a chunk ($525K) of cash on the books, which is balanced by about $487K in total current liabilities. HEMP is pulling in trailing 12-month revenues of $2.3M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 407.6%. You can bet we will update this one again as new information comes into view. 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.