SIPP INDUSTRIES IN (OTCMKTS:SIPC) Delivers Big Gains

Our readers will remember well SIPP INDUSTRIES IN (OTCMKTS:SIPC), which was featured by us a few months ago. We noted very good facts about this name including efforts to retire three hundred ninety-five million shares of restricted common stock and the elimination of one million shares of preferred stock. Additionally, we said that the new deal with Wanderport Corp (OTCMKTS: WDRP), which will commercialize bulk hemp seed and oil from SIPC, was going to be very positive.We were not wrong in remarking this business profile. Have a look at the following stock chart before we provide more details: 1-month chart for SIPCLet's recap rapidly the business model for starters. SIPC is a multifaceted corporation that specializes in technology, manufacturing, and distribution of commercial and consumer products. The most interesting is its wholly owned subsidiary, Major Hemp, which focuses on manufacturing hemp beer, high quality and competitively priced bulk hemp, CBD supply, co-packing and private labeling services.Recent DevelopmentsWe knew that the company was a business profile to be followed closely. This is what we thought in April when the company released that it had added seven new establishments and demand and new orders for Major Hemp Brown Ale was growing.That's not all. The company is expanding its presence in the Denver area as well as new cities, such as Aurora, Littleton, Broomfield, Wheat Ridge and Englewood. It is also planning to go to California, Illinois, and New York. It is believed that the company's proprietary blend is unique for brewers interested in hemp beer and other businesses operating in those areas would be interested in signing joint venture agreements with the company. We will need to be very alert on this subject because expanding into new areas should bring more revenues and more share price appreciation.There is more.In May, the company confirmed that as much as 23 establishments were already providing the premium hemp beer throughout the state of Colorado. Additionally, clients seem to be quite satisfied with the products, as the company noted reorders for Major Hemp Brown Ale from initial deliveries in February. Things seemed to be going very well for SIPC.There is another significant fact that maybe people do not recall. The company is developing a network of distributors and enhancing its equipment to cope with the rising demand. It was said also in May that the company can now provide limited samples of CBD beer for potential customers and pre-orders. President, Ted Jorgensen, said the following words about the new innovations:

"Our water soluble CBD blends perfectly with a number of beers we've tested at Sleeping Giant Brewery. The next step is determining the right beer, demand, and launch strategy." Source

Regarding the contracts with new distributors, the market got to know in June that Wanderport Corporation had started to use Cannabidiol from SPIC for its coffee. The news showed that the distributor appreciates the quality being delivered by SIPC and is not afraid of using other consumer products. In the same press release, it was also noted that the company was making progress with the Tobacco and Trade Bureau and Wholesale alcohol licenses for the addition of a new corporate office location. The company did not mention the date, thus we will need to be very alert. A new location could make the share price spike. Jorgensen said the following about the number of selling points:

"The total number of establishments carrying our beer is approaching 30 and having an office in close proximity will help solidify our relationships and reorders." Source

The relations with Wanderport Corporation looked even stronger in August when SIPC noted that it had signed a Letter of Intent for a minority stake in the company. This is a great news because the know-how accumulated by both companies could help both of them if they merge. Additionally, there should be cost synergies that could push up their net income. The companies have not yet signed a definitive agreement and are only talking about a stake, but be sure to have these ideas in mind.Additionally, we appreciate that the companies continued to report that the Sapa's Hemp and CBD Coffee blends continue gaining acceptance. Recurring sales are increasing and SIPC is doing very well by increasing dispensary and retail distribution to cope with the rising demand. The number of current locations was said to be 30 in the Denver area and the expectations were said to be high.It was not until a few weeks later that we could read about a more definitive agreement to acquire a minority stake in Wanderport Corporation. On September 26, 2017, a press release was received by the market saying that WDRP and SIPC will do a stock swap. SIPC will receive five million restricted common shares from WDRP in exchange for five million restricted common shares. As we noted earlier, Syman Vong, CEO of Sipp Industries, noted that synergies could be created between the two companies. Please check his words:

"We are a strong believer of synergistic collaboration and partnerships. We are confident that our collective efforts will result in quality products and services which will benefit the consumers and industry as a whole. We look forward to working with Wanderport's team in all future endeavors," Source

How is the collaboration going to start? Both companies said that they will work together to increase production of Major Hemp Brown Ale and expand its distribution beyond Colorado, starting with California. A new distributor that has been identified in Southern California will be also collaborating in the new venture.WDRP and SIPC are growing at a high pace and the business executives seem to be following this name. This is what we commenced to believe after WDRP was able to hire big fish Luis Cota, current President of World Food & Beverage Management Group. He brings outstanding know-how after four decades of experience in the wine and spirits industry. He worked with a number of notable establishments including Rutherford Hill Winery, Inglenook Napa Valley, Christian Brothers and the Henry Wine Group. Additionally, he has served as the National Sales Director of EOS Estate Winery for seven years before forming his own wine and spirits distributor and importer company; The Wilkes Wine Group. It is a great news.Share Price Spike and ConclusionIf you checked the stock chart and wanted to know what happened in November and December, read this carefully. On November 15, 2017, the company released its quarterly earnings report, which, we believe, surprised everybody. For the first time in many years, this business venture is providing revenues as well as positive net income. We believe that this fact made many people have a look at the financial statements reported and see that the balance sheet is also quite solid. This is what we appreciate the most. As of September 30, 2017, SIPC reported $9,552 in cash, $278,625 in fixed assets, $292,782 in total assets, and only a total amount of liabilities of $76,563. Thus, the company seems to have a great financial shape to grow its business.To sum up, overall, there’s plenty to like with Sipp Industries Inc.We will be updating our subscribers as soon as we know more. For the latest updates on SIPC, sign up below!Disclosure: We have no position in SIPC and have not been compensated for this article.Image courtesy of ashton via Flickr