Hemp Inc (OTCMKTS:HEMP) announced approximately 33,000 pounds of hemp biomass have been processed and are now available for sale. This, along with renewed momentum in the cannabis space, has helped this otherwise weak name to bounce in recent action.
According to the release, The biomass that is available for sale tested at a minimum of 7.5% cannabidiol (CBD). The biomass is from Pre-98 OG Bubba Kush, one of the top selling cultivars on the market. According to a report from Research and Markets, the global industrial hemp market is projected to grow from USD 4.6 billion in 2019 to USD 26.6 billion by 2025, recording a CAGR of 34%.
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 approximately 33,000 pounds of hemp biomass have been processed and are now available for sale.
Recent action has seen 32% tacked on to share pricing for the company in the past week. Moreover, the company has seen a growing influx of trading interest, with the stock’s recent average trading volume running 40% beyond its prior sustained average level.
“The hemp biomass comes from the hemp plants that produced the A and B colas for the King of Hemp™ product line, meaning that the biomass comes from the highest quality hemp plants,” said Hemp, Inc. CEO Bruce Perlowin. “It’s really remarkable that we are able to offer biomass for sale and industrial use, and speaks to the versatility of the hemp plant.”
Now commanding a market cap of $8.1M, HEMP has a relatively limited reserve ($258k) of cash on the books, which must be weighed relative to a sizeable mountain of about $6.2M in pressing debt to deal with. One should also note that this mountain of debt has been soaring over recent quarters. HEMP is purportedly pulling in trailing 12-month revenues of $3M. But we don’t for certain if that number will check out over time given the standards in play here for reporting. This is a controversial and interesting 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.