The legalization of the cannabis and hemp industries has birthed a number of companies.
As states begin legalizing cannabis for medical and recreational use, the market reach and depth of research for its other application is also increasing Hemp Inc (OTCMKTS:HEMP), a global leader in the industrial hemp industry and the owner of the largest hemp mill in the western hemisphere.
The company is hoping it can benefit from this expansion and can turn around its declining value in the market.
Here is the recent price action for the last few months:
In the past month, the stock steadily declined from a value of $0.0214 to $0.0182 and there are no clear signs of a recovery yet. In this piece, we will give you information on HEMP Inc and all that has happened within the past year.
Hemp, Inc. was founded in 2008, With a deep-rooted social and environmental mission at its core, Hemp, Inc. seeks to build a business constituency for the American small farmer, the American veteran, and other groups experiencing the ever-increasing disparity between tapering income and soaring expenses. As a leader in the industrial hemp industry with ownership of the largest commercial multi-purpose industrial hemp processing facility in North America, its management believes there can be tangible benefits reaped from adhering to a corporate social responsibility plan.
The company’s long-term goal is to be the leader in the industrial hemp industry in America, which is now estimated to be over $500 Million, with a mission is to provide green solutions that help make the world a better place to live. The company has regularly supported products that are eco friendly, organic, healthy, and solutions that replace many petroleum-based products.
In a forward thinking move, Hemp, Inc.’s wholly owned subsidiary Industrial Hemp Manufacturing, LLC purchased the largest decortication plant in North America, which is located in Spring Hope, North Carolina. The plant is housed in a 70,000 square foot warehouse on 9 acres and is scheduled for completion in the last quarter of 2015. The company will start producing fiber, loss circulation materials (LCM) and absorbents from kenaf and later from hemp.
Hemp, Inc. plans to initially produce a product for drilling rigs called “lost circulation material” (LCM), to be used for maintaining the seals when drilling for water, oil, gas, and any other liquid or gas. This product alone is capable of producing millions of dollars in revenue, since some of the largest oil companies in the world will become their primary customers.
It also plans to eventually produce fiber materials for the paper and fabric industries, and other industries that utilize materials from hemp to make products such as plastics, building materials, health and beauty related products and more. Hemp, Inc. also plans to purchase, acquire and/or joint venture with complimentary companies across various sectors of the hemp industry in an effort to build a portfolio of synergistic businesses that will increase cash flow, revenues, value, and position it as a leader in the industrial hemp industry.
A post by the Huffington Post recently stated that Hemp, Inc. “is quickly emerging as a pioneering force in what could be the next great industrial revolution.” The article also cited that, “All combined, Hemp, Inc. is now clearly positioned to be a major player in America’s $1 billion hemp CBD product market and it would not be surprising to start seeing buyout speculation with respect to the company’s operational facilities.” Such news has only served to raise investor’s interest in the company although its performance on the charts have been quite dissuading.
Earlier in the month, the company gave a report on the core infrastructures that it has built and has been using to capture the rapidly growing industrial hemp industry. The company continues to position itself on the frontlines of America’s hemp revolution. Led by Hemp, Inc. CEO, Bruce Perlowin, its management has taken a number of bold, methodical steps to position Hemp, Inc. for profitable and sustainable growth across the industrial hemp landscape. The four key infrastructure divisions, through which steps have been taken, thus far, are: industrial hemp manufacturing and processing, hemp oil extraction, hemp farming; and hemp education.
For the period ended 2016, the company recorded revenues of $0.75 million, a minor recovery from the massive slump in its revenue figures between 2014 and 2015. However, sales, general and admin expenses continued to rise, increasing by 66% compared to the 2015 period.
This contributed to the continuing trend of losses reported by the company, with the loss figure above $22 million for the past year.
The company still possesses adequate cash to finance its operations, but considering the inefficiency in managing its expenses, it is highly likely that it may need to raise capital soon. It is worth noting that it already has long term debt worth $8.8 million already on its books.
HEMP Inc is currently a leader in an industry with has a lot of potential. However, investors will need to see some improvement in its financial performance before there can be any substantial turnaround in value.
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.