Hemp Inc (OTCMKTS:HEMP) Moving Up The Charts

Hemp Inc (OTCMKTS:HEMP) is one of the more controversial names that we cover here at Insider Financial. This is mainly because of Hemp CEO Bruce Perlowin. Last summer, the SEC charged Hemp Inc, Bruce Perlowin, and others with a “long-running and profitable scheme resulted in the sale of hundreds of millions of unregistered and purportedly unrestricted Hemp shares to public investors. The execution of this scheme involved, among other things, purported gifts and consulting agreements that do not appear to have been bona fide and fraudulent statements made to Commission-registered broker-dealers.”While this is certainly bad news, it's not out of the ordinary on the OTC Markets. The good news is that Perlowin has actually positioned Hemp Inc to be a dominant player in the industrial hemp space. Hemp Inc is set to grow 3,000 acres of hemp this year in North Carolina. Hemp's North Carolina facility is the country's largest industrial hemp processing facility to process industrial hemp and manufacture products made from hemp, as well as Lost Circulation Material (LCM) and other absorbent materials. Hemp Inc CEO Bruce Perlowin said:

"Hemp, Inc. has the infrastructure in place to process millions of pounds of hemp fibers and stalks a year, on a commercial level. Our 70,000 square foot industrial hemp processing facility, on over 9 acres in Spring Hope, North Carolina, is the only one of this magnitude in North America. The industrial hemp crop is part of history in the making and it is something that will prove to be lucrative not only for the farmers in North Carolina but for Hemp, Inc. as well."

Currently, the good news is overshadowing the bad news and Hemp Inc is moving up the charts again. As you can see from the chart, the pattern has been to buy the dips and sell the rips. How far the current run continues depends right now on the news out of North Carolina.Hemp Inc has a lot riding on what the North Carolina Industrial Hemp Commission (NCIHC) has to say. The latest news is that the commission is only a few weeks away from finalizing the rules and regulations on the cultivation of hemp in North Carolina. The commission will accept written comments about the rules through January 27, 2017 and hopes to finalize the rules and regulations next month. (Licenses could be issued as soon as spring.) Once finalized, the Commission will be able to accept applications and issue permits for people to grow hemp as part of the state's pilot program. The spring planting of industrial hemp is contingent on how soon NCIHC finalizes the rules and regulations. Hemp Inc CEO Bruce Perlowin said:

"I believe North Carolina is poised to be the leading hemp growing state in North America and am confident that as the hemp market develops, farmers will see this as a viable alternative crop. Right now, more than 30 nations grow industrial hemp as an agricultural commodity. Once hemp is de-scheduled and removed from the Controlled Substances Act, I believe the tables will turn and the U.S. could be the largest exporter of hemp instead of the largest importer. Moreover, Hemp, Inc. has the infrastructure in place to process hemp on a large scale."

One advantage that Hemp Inc has is that David Schmitt, COO of Hemp, Inc.'s wholly-owned subsidiary, Industrial Hemp Manufacturing LLC, sits on the Board of Directors of the North Carolina Industrial Hemp Association (NCIHA). This association, not to be confused with the commission, was the organization that tirelessly petitioned to create the North Carolina hemp bill and helped to get it passed and helped with the final ratified bill that is now law in North Carolina. NCIHA has many initiatives in progress to help speed the cultivation and use of industrial hemp. The industrial hemp lobby appears to be strong in North Carolina and this makes for a favorable regulatory environment between the regulators and producers like Hemp Inc.Currently trading with a market cap of $34 million, HEMP has its fair share of fans and critics. We've been on the more critical side due to the company's history of creating losses for its shareholders. However, the one thing we have to tip our hat to Bruce Perlowin is that the guy never quits. While there have been plenty of delays in North Carolina, the company keeps making progress. The latest news gives us hope that 2017 might be a better year for HEMP than 2016. We will be updating our subscribers as soon as we know more. For the latest updates on HEMP, sign up below!Disclosure: We have no position in HEMP and have not been compensated for this article.