Hemp Inc (OTCMKTS:HEMP) is one of the most well known pot stocks. It has been well promoted by CEO and promoter-in-chief Bruce Perlowin. He has made his fair share of both fans and enemies in the industry. While investors over the years have had to separate the facts from the hype, the one thing that he has done well is position the company properly in North Carolina. Based on Hemp’s position in the Tar Heel state, 2016 looks to be the year of the comeback for Bruce Perlowin and Hemp Inc.
Hemp has partnered with the North Carolina Industrial Hemp Association (NCIHA) to raise awareness of Hemp in North Carolina. This is a smart move by Hemp because this educates farmers and other interested parties on the advantages of growing hemp in North Carolina and the uses of hemp. Hemp is helping to pave the way by boosting the hemp industry in North Carolina and ultimately creating hundreds of jobs and expanding Hemp’s business interests within the state. The company hopes that its multipurpose hemp processing plant is the beginning of the revitalization of the entire textile industry in the Southeastern region of the United States by using hemp textiles as opposed to the dying cotton industry.
Farmers in North Carolina now have the option to cultivate hemp crops with easy access to Hemp’s multipurpose industrial hemp commercial processing facility in Spring Hope, NC. Bruce Perlowin’s decision to bank on North Carolina has really paid off for Hemp. Hemp’s multipurpose industrial hemp processing facility in Spring Hope, North Carolina will process hemp to sell to textile manufacturers and other users. This commercial decortication facility is also the only one in the U.S. that will be able to process raw hemp or kenaf on a large scale.
This follows North Carolina’s General Assembly legalizing Hemp and Governor Pat McCrory choosing not to veto the legislation. This law went into effect last October. The bill stated:
“That it is in the best interest of the citizens of North Carolina to promote and encourage the development of an industrial hemp industry in the State in order to expand employment, promote economic activity, and provide opportunities to small farmers for an environmentally sustainable and profitable use of crop lands that might otherwise be lost to agricultural production. The purposes of this Article are to establish an agricultural pilot program for the cultivation of industrial hemp in the State, to provide for reporting on the program by growers and processors for agricultural or other research, and to pursue any federal permits or waivers necessary to allow industrial hemp to be grown in the State.”
Other states that have legalized hemp include Vermont, Kansas, Maine, Kentucky, Montana, Missouri, and Hawaii. The reality is that more and more states are realizing the economical advantages of the hemp plant. Hemp can be used in the manufacturing of thousands of products, thus legalizing hemp farming can increase jobs and provide additional revenue for farmers and the state. Other states have also started growing hemp and 33 states have proposed pro-hemp legislation.
Still the best place for a hemp operation is in North Carolina. For one, the farmers in North Carolina are looking for a new cash crop. Their primary cash crop is tobacco; however, there is less and less demand for tobacco. Furthermore, more tobacco is being farmed offshore more cheaply and that’s hurting the average North Carolina farmer. Hemp is exactly what they’re looking for. The latest update on the decorticator plant came from Hemp COO David Schmitt in December in Colorado. He said:
“We own the largest natural fiber decorticator in the USA. There are two in France and two in South Africa. Since May 2015, we’ve been reassembling it. Even though hemp is legal in North Carolina, there’s still a lot of work to do because we still have to set up a commission to regulate it (i.e., how to bring seed into the state and what that entails). We are very optimistic we can have seed in the ground come April of 2016. Until that happens, we will process kenaf through next year and then beginning 2017. Once we convert the line from kenaf to industrial hemp, we won’t go back to processing kenaf.”
By the end of 2016, Hemp plans on employing 100 workers at its North Carolina decorticator plant. While the company has disappointed investors in the past, we think things are about to turn around for Hemp. Shares are up off their 52 week lows and making a comeback. We will be updating Insider Financial as soon as we know more. For continuing coverage on HEMP and our other hot stock picks, sign up to Insider Financial today and get our next hot stock pick!
Disclosure: We have no position in HEMP and have not been compensated for this article.