In the category of big bounces in the hemp and cannabis space this week, one now has to take notice of Hemp Inc (OTCMKTS:HEMP). Shares of the stock ripped 40% higher on Thursday to close at a new multi-week high after slogging through a period of downward trending action over the summer. Helping to push the action, the company just announced it has geared up to produce 20,000 hemp pre-rolls per day and, according to executives, is already preparing to increase that amount to 20,000 per hour. While the release is short on concrete milestones, it does suggest a fresh push by the company to access more of its target market.
According to the release, the company’s smokable product, to enter the marketplace, is a high-end, top quality product that is both effective and flavorful. With one pre-roll selling for $10 retail, coupled with the infrastructure already in place for fast production, Hemp, Inc. expects to bring in major revenue by quarter’s end. “Hemp, Inc. made the decision this year to grow hemp predominantly for a smokable product focusing on CBD levels and terpene profiles. While some of Hemp, Inc.’s harvest will go to biomass for oil and isolate production, a significant amount will be used in the production of smokable products. This vertical integration merges seamlessly with Hemp, Inc.’s processing facilities which specialize in drying and curing the flower for smoking,” said Bruce Perlowin, CEO of Hemp, Inc.
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 it has geared up to produce 20,000 hemp pre-rolls per day and, according to executives, is already preparing to increase that amount to 20,000 per hour.
Traders will note 37% piled on for shareholders of the name during the trailing week. What’s more, the name has witnessed a pop in interest, as transaction volume levels have recently pushed 62% over the long run average.
Perlowin stated, “The flower cannot be simply heat dried as it is for biomass because the volatile terpenes will be lost along with the flavor and much of the benefit. The flower must be dried slowly and cured over several weeks to bring out the uniqueness in flavor and aroma while maintaining the full spectrum of benefits. We are able to grow, process, dry, cure and package the individual bud at a pace that has positioned us to be a leader in this booming industry.” According to Perlowin, the company will be aggressively marketing the products within a few weeks.
Currently trading at a market capitalization of $7.9M, HEMP has a reserve ($525K) of cash on the books, which stands against 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%. 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.