Hemp Inc (OTCMKTS:HEMP) continues to trade just below $0.02 support on moderate volume as the large loyal shareholder base waits for something good to happen like the explosive move HEMP made last year to highs well over $0.30 a share.
In recent news HEMP updated shareholders on their decortication facility in Spring Hope, North Carolina. Thus far, Hemp, Inc. was able to install its new Guard Lite Security Lighting Systems. CEO Bruce Perlowin said “We are all about sustainability… clean, renewable energy. According to Hemp, Inc. executives, Chief Operating Officer of Hemp, Inc.’s subsidiary, Industrial Hemp Manufacturing, LLC, David Schmitt is scheduled to meet with Duke Energy this week regarding selling its excess power from the Liberated Energy Guard Lite Security System back to the grid.
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.
On March 31 HEMP announced 2014 year end results; sales for the year ending December 31, 2014 were up 235% over the previous year, 2013. According to the 2014 year-end filing, sales were $7,952,014 compared to the mere $2,370,925 in 2013. Assets for the period were up 172% while losses declined by 33%.
According to executives, these improvements were achieved in the midst of the company refocusing on processing kenaf and industrial hemp with its first full-scale, automated Temafa decortication plant in North Carolina. The 70,000 square-foot decortication plant is the only one of its magnitude in the United States.
CEO Bruce Perlowin said, “We’re continually strengthening our market presence in this rapidly growing industry so we’re expecting strong year-end sales for 2015 as we begin processing kenaf for commercial use this fall and industrial hemp as soon as it is legalized in North Carolina.” According to Perlowin, it’s the perfect migration strategy and he is committed to the American farmers and to spearheading a new clean, green American Agricultural and Industrial Revolution based on hemp and hemp products. The company hopes to generate revenue from processing Kenaf for the oil drilling pipes, textile, building automotive and other industries.
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Currently trading at a $64 million market valuation HEMP filings show a history of losses that has resulted in significant dilution over the years. The 10k just filed does show $2.5 million in marketable securities and $243,000 in cash as well as well as the $7,952,014 in revenue up from just $ 2,370,925 for 2013. As the stock continues to fall in recent days investors are looking for a reversal; there are 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.