For most people that are not familiar with cannabis, the phrase “Cannabis Legalization Revolution” typically conjures up thoughts of new and innovative cannabis based medications and therapies for ailments which there are no cures for, or new forms of recreational cannabis products and edibles that can be purchased at any local convenience store. What many people don’t realize is that cannabis has many uses other than that of consumption for medicinal or recreational use. For many years, cannabis has been used to manufacture items such as paper products, textiles, bio-degradable plastics, fuels, solvents, and lubricants just to name a few.
While the legalization wave that continues across the country has prompted many businesses to enter the cannabis production and marketing race to acquire a market share of the rapidly growing industry, many businesses have decided to also capitalize on producing non-consumption types of cannabis products. Hemp Inc (OTCMKTS:HEMP) is one such business. Hemp Inc. is making a name for itself in the industrial hemp space (“industrial hemp” refers to cannabis production for non-consumed products).
Hemp’s North Carolina facility is the country’s largest industrial hemp processing facility and will process and manufacture products made from hemp, as well as Lost Circulation Material (LCM) and other absorbent materials. These absorbent material are used by oil companies in the oil-drilling process. Hemp Inc. has had some recent positive press releases.
On Mar 2, 2017, Hemp executive announced the purchase of a legal hemp CBD extraction unit from NuAxon BioScience, a manufacturer and the producer of world class, large capacity CO2 Supercritical Extraction equipment. This device will be used by Hemp, Inc. to process raw hemp into cannabinoid (CBD) extracts and oils. According to David Schmitt, COO of Hemp, Inc.’s wholly owned subsidiary Industrial Hemp Manufacturing, LLC in Spring Hope, North Carolina, the company does have access to land where they can grow industrial hemp in North Carolina.
“Cannabis plants bred for industrial hemp produce high levels of cannabinoid, or CBD. We can separate the hemp plants from the flowering plants to isolate them for their medicinal properties. We have since realized this would be a great opportunity for Hemp, Inc. to take advantage of and capitalize on it. The infrastructure is in place and we’re happy to be adding the CO2 Supercritical Extraction unit.”
On Feb 21, 2017, Hemp, Inc. announced its second Kenaf harvest from its cultivation fields in Spring Hope, North Carolina. Executives say the 420 acres of Kenaf, a cousin plant to hemp, have been cut and raked and baled. Trucks have already started transporting the kenaf to Hemp, Inc.’s 70,000 square foot industrial hemp processing facility where it is to be processed.
“This is another huge milestone for Hemp, Inc. From seed, to harvest, to paying the farmers, our 420-acre Kenaf crop epitomizes success. We are a part of this local farming community and to be able to continue to inject revenue into something which we have become a part, feels good,” says David Schmitt, COO of Hemp, Inc.’s Industrial Hemp Manufacturing.
On Feb 15, 2017, – Hemp, Inc. announced that the much-anticipated milling operation in Spring Hope, North Carolina is now complete and is set to enter beta testing. The mill, a part of Hemp, Inc.’s 70,000 square-foot industrial hemp processing facility on 9 acres, will be able to process and produce Lost Circulation Material (LCMs) and oil absorbent materials for sale into the marketplace. David Schmitt, COO said they expect to have the mill operating at full capacity once beta testing is over.
“We have remained and continue to remain committed to bringing the facility online and operational.”
Hemp’s stock price has been trading in a range since the beginning of 2016 with a resistance level at $.053 and a support level at $.028. Both levels were tested multiple times during 2016. The resistance level has already been tested twice since the beginning of 2017. The stock is currently trading at $.033. Volume has increased noticeably since October of 2016. Fourth quarter financials for 2016 are yet to be reported. Prior to that the company does show revenue generating activity. Current market capitalization stands at $25.2 million, on 754 million shares outstanding as of June 30, 2016.
Hemp’s questionable financial activities of the past have weighed heavily on its reputation, but its business activities seem to have remained on track to put Hemp Inc. in a positive revenue generating position. Once revenues start coming in, the unfavorable news of the past will be forgotten, and growth with take place. Hemp Inc. is definitely one to keep on the radar and keep a lookout for increased revenues in the near future.
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Disclosure: We have no position in HEMP and have not been compensated for this article.