Hemp Inc (OTCMKTS:HEMP) recently dipped to $0.026 level before turning around and moving up again on accelerating volume. HEMP has a loyal shareholder base that believes in the Company and swears the stocks goes higher.
The stock does have a history of big moves running from under a penny to highs well over $0.30 at the beginning of last year when the pot stock hype reached its peak.
Hemp Inc (OTCMKTS:HEMP) is holding company with a number of subsidiaries operating in the industrial hemp sector as well as the legal cannabis industry. The Company intends to focus on the huge peripheral businesses created by the quickly emerging, and growing, multibillion dollar medical marijuana and hemp industries.
The big story here is HEMP’s planned Temafa decortication line in North Carolina. The automated Temafa decortication equipment designed to separate the fiber from the core of the hemp plant through a process known as decortication.
The Temafa decortication line of equipment, the only one of its kind in the United States, enables the company to process raw hemp for American farmers into two valuable base products (fiber and hurd) that can both yield hundreds of products.
Back when they bought the decortication CEO Bruce Perlowin said “This purchase of decortication equipment was a critical step in order for Hemp, Inc. to help Americans transition from non-sustainable synthetic solutions to a hemp-based green solution. We are very excited at what we’ll be able to achieve once our manufacturing facility ramps its hemp production volume up over the next few years.”
On March 10 HEMP said it has been given the green light by Nash County to proceed with the reassembly of its Temafa decortication line in North Carolina. In order to issue Hemp, Inc.’s subsidiary its agricultural exemption, the County required the engineering drawings for the line layout and a farm ID number. The company was issued its farm ID number from the North Carolina Department of Revenue and its engineering drawings for the line layout were approved.
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With the agricultural permit in place, the Temafa line of equipment inside the plant can be reassembled. Schmitt is currently making arrangements to get the Temafa Engineers to Spring Hope to begin the process. The Temafa line of equipment is the only one of its size and scope in North America and is one of only five in the world. “There are two in South Africa and two others in France that are actually processing industrial hemp,” says Schmitt.
David Schmitt, COO of Hemp said he will meet with local farmers on March 18, 2015 to make arrangements to get approximately 2,000 acres of Kenaf planted, which would yield over twenty million pounds of Kenaf for use in 2016. The company currently has approximately 4 million pounds of usable Kenaf on hand and is in the last stages of negotiating the purchase of another 10 million pounds of raw Kenaf, located within 20 miles of the company. Once Industrial Hemp is legal in North Carolina, the company plans to convert its inventory of Kenaf to Industrial Hemp for all products.
While not technically a pot stock HEMP does move with the sector which got a bump yesterday after a Medical marijuana bill was introduced in the Senate that declared that the federal prohibition against medical marijuana was out of step with science proposing to make the drug more accessible nationwide for medical purposes. The bill was introduced by Sen. Cory Booker, D-New Jersey, Sen. Kirsten Gillibrand, D-New York, and Rand Paul, R-Kentucky.
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Currently trading at a $78 million market valuation HEMP last 10Q shows a dire financial situation with a history of losses that has resulted in significant dilution over the years. From current levels however, HEMP represents a compelling technical setup with plenty of catalysts at play. The stock also has a history of big moves and is always one national news story away from another run. We will be updating on HEMP when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with HEMP.
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Disclosure: we hold no position in HEMP either long or short and we have not been compensated for this article.