Hemp Inc (OTCMKTS:HEMP) has been bullishly up more than 30% over the last five days and more than 50% the last 30 days. HEMP is seeing upward aggressive action on legislative news and also strong internal momentum. The company is planting 25 acres of industrial hemp, which would yield 100,000 pounds of CBD oil. This news stems from a partnership between HEMP and HQ Global Education. The deal is intended to connect the cannabis industry with high-quality CBD oil.
“We look forward to furthering our relationship with HQGE as they expand their footprint in the hemp CBD market,” said HEMP, CEO Bruce Perlowin. “The CBD industry in the United States has enormous growth potential, especially as more states continue to legalize hemp and the proposed bill to legalize hemp at the federal level continues to gain bipartisan support.”
Hemp Inc (OTCMKTS:HEMP) was founded in 2008. HEMP 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.”
The company’s business model also states that “HEMP 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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According to the company press, this initial cultivation of hemp will be processed using Hemp, Inc.’s NuAxon Tech CO2 Supercritical Extractor which is housed in HEMP’s 85,000-square foot facility in Spring Hope, North Carolina. Planting is expected to occur before the end of the month and should be ready for harvest by late August/early September 2018. The CBD extraction will begin immediately upon the harvesting and drying of the fully mature hemp harvest.
Parallel to this partnership, the Hemp Farming Act led by Senate Majority Leader, R-Mitch McConnell, is starting to boost interest in HEMP. “Securing the Hemp Farming Act as part of the 2018 Farm Bill has been a top priority of mine. I look forward to continuing to work with my Senate colleagues on this and many other issues important to Kentucky agriculture as we move towards consideration of the Farm Bill,” McConnell said in a statement.
At this time, carrying a capital value in the market of $10.79M, HEMP has a reserve ($575K) of cash on the books, which stands against about $6.2M in total liabilities. HEMP is compiling trailing 12-month revenues of $199K. The company is in a good position to benefit from the recent popularity of CBD oil and the legitimacy it is now receiving politically and in the broader culture. 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.