Hemp Inc (OTCMKTS:HEMP) Is Now At The Recovery Stage

Hemp Inc (OTCMKTS:HEMP) like most cannabis stocks has been enjoying a bull run over the past month. Their share price came from as low as $.2 during the beginning of December to close the month at highs of $.5, a 150% increase. This is a converse from the bearish outlook exhibited by their share price during our last review.Furthermore, the shares traded also increased to over 300 million during the same period as is seen in the chart below: HEMP Daily ChartOver the course of this piece, we will examine the reason behind the above-stated price surge and how sustainable it is going forward.Background to HempBefore going into the intricacies, let us first take a look at the history of HEMP.Hemp Inc. is a publicly traded company (OTCMKTS:HEMP) that was founded in 2000 and headquartered in Las Vegas, Nevada. Its mission was to provide green solutions that help make the world a better place to live. Hemp products are eco-friendly, healthy and can often replace the petroleum-based products.Recent DevelopmentsHemp Inc. announced the first phase of the revamped website. The website was restructured to offer its shareholders easy and quick access to essential information about the company while providing a more comprehensive understanding of the company's goals, mission and value.Hemp Inc will now post its financial disclosures on its website instead of on OTC markets as done previously. Continual updates on the Hemp University and corporate press releases will also be offered in a more streamlined format. While it is work in progress, it is a good start.Hemp Inc's 3rd quarterly report ending on 30th September 2017 is now posted on the company website. All future quarterly reports and financial data will be posted on the same said website.The company wants to ensure shareholders, potential customers, investors, and media have easy access to information they need regarding the company especially financial disclosures. The company prides itself on being the most transparent giving shareholders an independent knowledge of its operations.The company has spent millions of dollars and three and a half years building the most significant industrial hemp processing facility in the western hemisphere. The 85,000-square foot campus on 9 Acres has been up and running and producing loss circulation materials (LCM'S) since 1st. August 2017 and the company is building its reserves of LCM's to have a consistent supply of high-quality natural products that are in high demand.The company position is that for America to grow not only is the growth of Hemp necessary but the requisite infrastructure to process it is equally important. For this multimillion dollar Hemp industry to grow America must first develop the costly industrial Hemp Infrastructure (IHI) which is exactly what Hemp Inc has been doing for the last four years. It's been years of long hard work which has begun to pay off as each of the first five divisions moves into operational and revenue generation.With a deep-rooted social and environmental mission at its core, Hemp Inc. seeks to build a business constituency for the small American farmer and other groups experiencing the ever-increasing disparity between tapering income and soaring expenses. Hemp believes there can be tangible benefits reaped from adhering to corporate social responsibility plan.Hemp is evolving into a cleaner green, eco-friendly sustainable environment that may see it as the next American industrial revolution.The Bill 119Wisconsin Governor Scott Walker signed Senate Bill 119 that was adopted last month into law and published on 1st December 2017. According to the Wisconsin state legislature, the bill relates to ''growing and processing industrial Hemp providing an exception from emergency rule procedures granting rule-making authority an appropriation and providing a criminal penalty. The law will also allow a pilot program to be established in the state that will examine the cultivation processing and marketing of industrial hemp and be administered by Wisconsin department of agriculture trade and consumer protection.Bill 119 requires THE DATCP to issue licenses that authorize the growing and processing of industrial hemp. The bill provides that a person may possess, transport, sell distribute or buy industrial hemp without a license. This law also provides that DATCP or an institution of higher education may establish an agricultural pilot program to study industrial hemp and to grow Hemp for that purpose.The bill creates an exception of two possessing, transporting, delivering, selling, distributing and buying industrial hemp if it was grown, cultivated by a person licensed BY DATCP or by a person in another state or country by the laws of that state or country.The question as to how Hemp Inc will benefit from this bill lingers in people’s minds. We have got you covered.Hemp Inc has already received over 25 calls from farmers wanting the company to process their hemp. As such, the bill will serve as a start to the growth of Hemp Inc.FinancialsDespite their gross loss of $14,264 from a profit of $ 20,066, the company’s net loss position reduced from over $15.8 million to $3.9 million in 3Q2017 and 2Q2017 respectively. This was due to the reduction in operating expenses from $5.1 million to $1.9 million over the same periods. Moreover, their interest expenses fell from $10.7 million to $2 million.As such, this narrative alludes to the cost-cutting policy the company has adopted, one that will go a long way in ensuring that they meet their long-term objective of being profitable and cash flow positive.ConclusionHEMP is working hard at ensuring they succeed. This has paid off quite well for them. We expect that they will keep growing into the future thus remain bullish about them.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.