The Highs and Lows of Hemp Inc (OTCMKTS:HEMP)

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Hemp Inc (OTCMKTS:HEMP) is one volatile stock that continues to provide great opportunities for Investors to cash in on the swings. In early 2014 is when HEMP saw its biggest move which are harder to come by these days due to dilution and the increasing share count.

While HEMP is not officially an MJ stock it trades with the sector which recently got a boost as many new states have legalized the drug including California, Nevada, Maine, and Massachusetts on November 8.

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, multi-billion dollar medical marijuana and hemp industries.

The big story here is HEMP’s Temafa decortication line in North Carolina. The automated Temafa decortication equipment is 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 (there are 2 in Canada, 2 in South Africa and 1 in the UK) enables HEMP 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.”

In March 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.

Earlier this year 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.

On February 9 HEMP announced it has signed a Letter of Intent (LOI) with Real Estate Contacts, Inc. REAC, +47.06%  According to the LOI, REAC will sell its Southern Hemp Company brand to Hemp, Inc. As part of the strategic partnership, REAC will continue to be the manufacturer and Hemp, Inc. will manage the retail operations. REAC executive, Roger Ford, will oversee the manufacturing of all products.

Bruce Perlowin, CEO of Hemp, Inc. (otc pink:HEMP) said, “This is an exciting opportunity for Hemp, Inc. and we are looking forward to the partnership.” The agreement calls for the debut of the first 12 products, highlighted by a Hemp infused moonshine. The first 12 products will be available for purchase immediately following the close of the contract next week. The partnership plans to introduce at least 10 more products by the second quarter of 2017.

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Currently trading at a $27 million market valuation HEMP is a pink sheet stock, who’s filings are unaudited with a history of big losses that has resulted in significant dilution in the past; but HEMP is an exciting story developing in small caps and the owner of the only decortication plant in the US very strategically located in North Carolina where industrial hemp was recently legalized. The stock is also one of the original pot sector related stocks on the OTC and one good press release away from another big move. 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.

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