Hemp Inc (HEMP)

[Condor65]

"Decorticator" - Updated 08/16/14

Compared to previous versions, I have modified the points 3 and 4, and added the dates. The point 10 is new.

In date March 5th, 2014 Hemp inc. has acquired in auction the biggest decorticator in USA, built by Temafa

http://www.temafa.com/Decortication_Lines.html

Machinery like this are in South Africa (2), the only one present in UK was disassembled and shipped to France, 2 are in Canada.

http://finance.yahoo.com/news/hemp-inc-purchases-hemp-decortication-100000356.html


Cit:"This opens a huge opportunity for Hemp, Inc. (HEMP) to position itself as the buyer and processor of farmers' harvests. As American farmers begin to grow and cultivate hemp, Hemp, Inc.'s facility will also serve as a place to buy the harvest. With the only decorticating machinery of this size in the United States, Hemp, Inc. can process raw hemp which can be used to make paper, fabric, cellulose plastics, materials used extensively in well drilling to prevent lost circulation, material for toxic spill cleanup; and, highly insulating building products such Hempcrete, to name a few."

Location at the date of the auction: 3628 Hwy 91, Snow Hill, NC, Stati Uniti

https://maps.google.it/maps?oe=utf-8&rls=org.mozilla:it:official&client=firefox-a&channel=rcs&gfe_rd=cr&um=1&ie=UTF-8&fb=1&gl=it&q=Biotech+Mills+Inc&cid=1988482429509941072&sa=X&ei=n02fU4OZL6rG7Aax84CYCg&ved=0CIwBEPwSMAs

Details of passage from the 1rst owner ( BioTech Mills ) to the 2nd owner ( Kenactiv Innovations ) in 2012

http://www.prnewswire.com/news-releases/biotech-mills-inc-to-do-business-as-kenactiv-innovations-inc-141739153.html

The Bankruptcy Auction (6:00 am - Wednesday March 5th, 2014) :

https://business-bankruptcies.com/cases/kenactiv-innovations-inc

http://www.auctionbill.com/North_Carolina/bankruptcy-auction-s-172408.shtml


1)This decorticator can be used both for kenaf and hemp (and probably juta), is fully operative, in the video are present 2 operators of the site.

2)Hemp inc with the decorticator has also acquired a large quantity of kenaf, both semi-finished product or ready to ship.

You can find all in this video:

If you skip to 8 min 40 secs you will find a price for the kenaf = 0.25-0.26$ per pound of processed fibre "for a paper company, for exemple"

If you skip to 8 min 58 secs you will find that in the warehouse there are 15 million pounds of raw and processed kenaf.

confimed in:

http://finance.yahoo.com/news/hemp-inc-purchases-hemp-decortication-100000356.html


Cit:” Due to the similarities of kenaf and hemp, the same equipment can process both raw materials. Appraised as "very good" condition, the decortication equipment was originally purchased for over $10,000,000. The recent purchase made by Hemp, Inc. (HEMP) not only included the machinery, but also included roughly 15 million pounds of raw and processed kenaf which can be sold to the automotive, paper, oil drilling, textile industries and as construction materials.”

15.000.000 pounds = 6800 Tons

The revenue for the crude product is approx. 3.750.000 $

Could be the solution for the loan.

The plant in 2009 had a value of approximately 10mil$ .

If it was a direct sale, the price would have been approximately between half and a third.

The plant was purchased at a judicial auction (lower price), with the content of the warehouse.

NB. The price of 0.25 $/lb according with prices founded in Alibaba ONLY for the crude fiber : 400 to 600$/ton (crude fiber),
For the processed product the price rise, depends on the type of processing.
750 to 1000$/ton (Short fiber) and up.

http://www.alibaba.com/product-detail/Kenaf-crude-fiber_158143754.html

http://www.alibaba.com/product-detail/Kenaf-Fiber-TEMAFA_158025509.html


3) After the auction the decorticator has been moved to North Carolina, in temporary installation.

http://otcmarkets.com/stock/HEMP/news/Hemp--Inc--to-Attend-the-2014-Hemp-Symposium-in-Boulder--Colorado?id=86286&b=y

Cit:” The Temafa decortication line of equipment will now enable the company to process raw hemp for American farmers, when it becomes legal, into two valuable base products (fiber and hurd) that can both yield hundreds of products. The equipment is currently located at a temporary plant in North Carolina , but is now ready to start transporting the machinery into its new facility in North Carolina. The anticipated closing date on Hemp, Inc.'s new facility is August 26, 2014 , at which time all Hemp, Inc.'s machinery should be settled into its permanent home. According to Hemp, Inc. executives, the company has retained the Temafa manufacturing team from Germany to reassemble the decortication line in its new facility in the next month.”

4) Why North Carolina?

Kentucky, Tennessee, South Carolina, North Carolina, Georgia are the COTTON area.

In this site you can see the movement of price for the cotton in USA, from 2009 to 2014.

http://it.investing.com/commodities/us-cotton-no.2-advanced-chart

(to extend the period click on M )

The price of US Cotton after the 2008 crisis (80 $ ) raise to 200$ in 2011, then sunk to 86$ in 2014.

Compared to hemp or kenaf, the cotton have higher production cost, requires large use of pesticides, and large use of chemical fertilizers.

Then, it’s possible a partial CONVERSION from cotton to HEMP or KENAF.

Cit: ”This (purchase) opens a huge opportunity for Hemp, Inc. (HEMP) to position itself as the buyer and processor of farmers' harvests. As American farmers begin to grow and cultivate hemp, Hemp, Inc.'s facility will also serve as a place to buy the harvest. With the only decorticating machinery of this size in the United States, Hemp, Inc. can process raw hemp which can be used to make paper, fabric, cellulose plastics, materials used extensively in well drilling to prevent lost circulation, material for toxic spill cleanup; and, highly insulating building products such Hempcrete, to name a few.”

About the situation in North Carolina:

2013: http://www.bluenc.com/industrial-hemp-coming-north-carolina

2013: http://www.bluenc.com/yet-another-reason-why-industrial-hemp-right-north-carolina

http://www.organicconsumers.org/state/greenbiz.cfm?state=NC&type=hemp


Elections will take place in NC on November 4, 2014.

For exemple, Kirk Sherril is Rep.candidate on dist.84:

http://www.kirksherrill.org/index.htm

http://www.kirksherrill.org/hemp_nc.htm

Actual legislation:

http://www.votehemp.com/state.html

http://www.votehemp.com/state/north_carolina.html


North Carolina Hemp & Cotton & Recycled Products:

http://www.organicconsumers.org/state/greenbiz.cfm?state=NC&type=hemp


5) First sale: 12.000 pounds of raw kenaf and 15.000 pounds of finished kenaf fiber (June 12, 2014)

http://finance.yahoo.com/news/hemp-inc-announces-first-sale-140716490.html

Cit:” Since purchasing its line of automated decortication equipment and accompanying kenaf, Hemp, Inc. (OTC:HEMP) announced today the first sale of its raw and processed kenaf in the United States. According to Hemp, Inc. executives, a developer in Kingman, Arizona has purchased approximately 12,000 pounds of raw kenaf and approximately 15,000 pounds of finished kenaf fiber for inclusion in the concrete and/or stucco home building materials for their environmentally sound eco-community.”

Cit:"Hemp, Inc. has not only received requests for samples of the kenaf, but has also since received a potential order for 200,000 pounds of kenaf. Other potential buyers of the kenaf are currently testing the kenaf and if it suits their needs, may purchase the entire inventory, according to Hemp, Inc. CEO, Bruce Perlowin. The kenaf is expected to be an easy sell. It has a history of being an important source of bast or cordage fibers used in the manufacturing of rope, bagging and other coarse fiber products."

6) Price of Hemp fiber : US $5 - 10 / Kilogram

http://www.alibaba.com/product-detail/Supply-100-Hemp-Combed-Sliver-for_423136752.html?s=p

7) Price for Hemp seeds: US $1.5 - 2 / Kilogram

http://www.alibaba.com/product-detail/hemp_286347340.html?s=p

8) various Hemp

http://www.alibaba.com/showroom/hemp-raw-material.html

9) Tech Docs

http://www.omafra.gov.on.ca/english/crops/facts/00-067.htm

http://hemp4victory.wordpress.com/

10) Specific studies:

Marijuana Production in the United States (2006), By Jon Gettman, Ph.D.

http://www.drugscience.org/Archive/bcr2/MJCropReport_2006.pdf

Lost Taxes and Other Costs of Marijuana Laws (2007), By Jon Gettman, Ph.D.

http://www.drugscience.org/Archive/bcr4/Lost%20Taxes%20and%20Other%20Costs%20of%20Marijuana%20Laws.pdf





About the previous owner of the plant, i think they are unlucky: buy a plant like this in 2009 ... just in time to be swept away by the crisis.

When questions will be asked (or suggestions, or everything can be useful to clarify this argument) i will update this post (day by day).

About my English, please be patient.

I'm Italian.

C.