Hemp Inc (HEMP)

[Condor65]

"Decorticator" - Updated 09/08/14 – Updated p.5

Moved !(photos from Twitter and Facebook)


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.

(May 19, 2014)
http://www.otcmarkets.com/stock/HEMP/news/Hemp--Inc--Purchases-Hemp-Decortication-Equipment-That-Was-Originally-Purchased-for-Over--10-000-000-to-be-Used-for-Core-Processing-of-Raw-Hemp-in-U-S-?id=80908&b=y

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."

http://www.youtube.com/watch?feature=player_embedded&v=06LRwN2idTQ

http://www.youtube.com/watch?v=7lANjA20PVk


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:

http://www.youtube.com/watch?v=KwYOErhkUA8


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://www.otcmarkets.com/stock/HEMP/news/Hemp--Inc--Purchases-Hemp-Decortication-Equipment-That-Was-Originally-Purchased-for-Over--10-000-000-to-be-Used-for-Core-Processing-of-Raw-Hemp-in-U-S-?id=80908&b=y

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.(Aug 15, 2014)

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) (Aug 29, 2014) The decorticator is ready to move:

http://www.otcmarkets.com/stock/HEMP/news/Photo-Release----Hemp--Inc--Ramps-Up-Move-to-Its-New-Decorticating-Plant?id=86971&b=y

Cit:”Hemp, Inc.'s new decorticating plant is located just forty (40) miles east of Raleigh, North Carolina. The signing of the closing documents is scheduled for Tuesday, September 2, 2014.”

“Edwards, Inc., a full-service industrial contractor serving the Southeastern part of the United States, has also been on site for the last 60 days assisting with the removal and transportation of the processing machinery.”

“According to executives, the company purchased semi trucks, trailers, forklifts and all other necessary equipment needed to facilitate the move to the new plant.”

- I presume that the trucks, trailers etc will be useful to move the hemp or the kenaf from the producers to the plant and the processed to the buyers.

Photo: http://www.globenewswire.com/NewsRoom/Attachment/27389

Cit: “According to Hemp, Inc. executives, the Temafa manufacturing team from Germany that was retained to reassemble the decortication line in its new facility is scheduled to arrive on Monday, September 8, 2014 and will remain on-site for approximately 60 days... until the decortication line is fully operational.”

- The target for the Company is to have the decorticator fully operational before the first week of november 2014. (The Temafa team is not in USA for vacations: comes from Germany to rebuild and make working the plant).At that time the hemp grown this summer will be ready to be processed.

And start the processing of hemp and kenaf (6800Tons in stock).

Cit: “David Schmitt, COO of Hemp, Inc.'s wholly owned subsidiary, Industrial Hemp Manufacturing, LLC, said, "The move is way ahead of schedule and I anticipate it being in full production in the first quarter of 2015. I've contacted a number potential customers and there's a great amount of interest in the products we'll be manufacturing."

Cit: “Bruce Perlowin, CEO of Hemp, Inc., said, "We will continue to process and sell the millions of pounds of kenaf we currently have on hand as we wait for North Carolina to follow South Carolina, Kentucky and other states' leads and change their laws on growing hemp. We are also working with another company, which plans to go public in the near future, which was looking for land to grow hemp once North Carolina changed its laws.”
"In this case, to be able to generate income in one crop, while we wait for the laws to be changed and the farmers in North Carolina to grow enough hemp to supply our plant, is a perfect migration strategy for us to utilize as we promote the industrial hemp industry."

5) Set 03/14 : The contract has been signed, and the decorticator is moved.

https://twitter.com/HempInc/status/506946996889223168

https://twitter.com/HempInc/status/506947264460623873

https://twitter.com/HempInc/status/506949695554322432

https://twitter.com/HempInc/status/506955462504218624/photo/1

https://twitter.com/HempInc/status/507493787938344961

https://twitter.com/HempInc/status/507493925343752192

https://www.facebook.com/hempinc



6) 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, large use of chemical fertilizers and more water.

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.

When i've searched confirm of the sentiments about this problem in the cotton area, i searched the on-line opinion of a Rep canditate (traditionally ostile, IMHO).

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

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

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

This site show all the candidate of N.C. House of Representatives.

http://thevoterupdate.com/2014/candidates/nchouse/index.php

The Governor of N.C. is Pat McCrory (Repubblican). Read this:

http://www.governor.state.nc.us/newsroom/press-releases/20140703/governor-mccrory-signs-legislation-allowing-hemp-oil-extract

Actual legislation:

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

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

North Carolina Industrial Hemp Alliance:

https://www.facebook.com/pages/North-Carolina-Industrial-Hemp-Alliance/184445231595295?_fb_noscript=1


North Carolina Hemp & Cotton & Recycled Products:

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


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

http://www.otcmarkets.com/stock/HEMP/news/Hemp--Inc--Announces-First-Sale-of-Kenaf?id=82605&b=y

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."


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

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


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

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


10) various Hemp

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


11) Tech Docs

http://www.omafra.gov.on.ca/english/crops/facts/00-067.htm
http://hemp4victory.wordpress.com/


12) 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.