Hemp Inc (HEMP)

[Condor65]

"Decorticator + OIL (Rev.)"– Upd.12/04/14 - p.6+8+9+18

Video + Investment + Projects + NEW agreement (Revised)


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) How to move a decorticator...in a time lapse video. (Nov 25, 2014)

Very funny video hidden in the report update:

https://www.youtube.com/watch?v=cYeU7iJHOdI&sns=em

"After months moving from its original location to its current home, the Temafa and Macintosh line of equipment, the mill and the Kenaf is 100% completely moved. Everything is now in its new facility being assembled and organized, as Hemp, Inc. sets up shop."


7) Set 25/14 : Reassembling ….

Cit."SPRING HOPE, N.C., Sept. 25, 2014 (GLOBE NEWSWIRE) -- Bruce Perlowin, CEO of Hemp, Inc. (OTC:HEMP) today announced its wholly owned subsidiary, Industrial Hemp Manufacturing, LLC, (IHM) has just purchased and secured its permanent facility for the Temafa decortication line of equipment. Located east of Raleigh at 1436 N. NC Hwy 581 in Spring Hope, NC, the facility encompasses two buildings totaling nearly 70,000 square feet that spans almost 7 acres. The first of this magnitude and caliber in the United States, the newly housed decortication equipment underscores Hemp, Inc.'s long-term commitment to creating economic value and sustainable, green products."

https://www.youtube.com/watch?v=pQ5xMZ2RxmY&feature=youtu.be

http://www.otcmarkets.com/stock/HEMP/news/Photo-Release----Hemp--Inc--Subsidiary-Finalizes-the-Purchase-of-Its-70-000-Square-Foot-Industrial-Hemp-Decortication-Facility-in-North-Carolina?id=88519&b=y

A photo accompanying this release is available at http://www.globenewswire.com/newsroom/prs/?pkgid=27935.

David Schmitt, COO of Hemp, Inc.'s wholly owned subsidiary, Industrial Hemp Manufacturing, LLC, said, "Initially, we will be processing 15 million pounds of kenaf after which we will process hemp." Schmitt plans to begin operations as early as first quarter of 2015 and says there is a lot of interest in the products that will be manufactured at the plant. According to Schmitt, among the first products to be produced will be for the oil and gas drilling, automotive, paper, and textile industries as construction materials.

Executives expect the move to be completed in another week or two. The equipment has already been disassembled under the watchful eye of a skilled German engineer from the Temafa manufacturer.

"We are embarking on our most ambitious launch yet. Our growth in the third and fourth quarter 2014 is on the heels of a strong previous quarter," says Craig Perlowin, Hemp, Inc.'s Secretary of Treasurer who has traveled to Spring Hope, NC multiple times over the last two months to oversee the process… from locating the building to moving the equipment and raw materials. "Hemp, Inc., thus far, is the largest and will possibly be the only hemp processing plant in America," concluded Craig Perlowin.


8) Dimensions of the plant and investment, personal guarantee of Bruce Perlowin (Nov 25, 2014)

http://www.otcmarkets.com/stock/HEMP/news/Hemp--Inc--Reports-2014-Third-Quarter-Results-and-Company-Update?id=92404&b=y

Cit: The CEO's personal guarantee also included personal guarantees for the company's loans. Perlowin is committed to the American farmers and to spearhead a new clean, green American Agricultural and Industrial Revolution based on hemp and hemp products.
Cit: The replacement value (the cost to duplicate this today) of the decortication and milling plant, the 70,000 square-foot warehouse (with a 6-inch cement foundation and a refrigerated section), the semi trucks, forklifts and other equipment, and millions of pounds of processed Kenaf exceeds $20,000,000. However, since the plant, Kenaf and the new warehouse and acreage was purchased through the bankruptcy court, the company only paid a fraction of that cost, thereby getting a great deal.”


9) Projects: CBD Oil (Nov 25, 2014)

The next frontier is CBD Oil production.

http://www.otcmarkets.com/stock/HEMP/news/Hemp--Inc--Reports-2014-Third-Quarter-Results-and-Company-Update?id=92404&b=y

Cit: "From protein to fiber to CBDs, our aim is to be the leading processor of processed and raw hemp materials," said Perlowin. There are also plans of building a GMP(*) compliant facility for the extraction of CBDs from hemp. "While we wait for North Carolina to change its law to legalize hemp, revenues will be generated from processing Kenaf for the oil drilling pipes, textile, building automotive and other industries. It's the perfect migration strategy," says Perlowin, to generate revenues from the Kenaf plant and thus keep Hemp, Inc. years ahead in the hemp processing industry. (See p.18)

(*)NOTES:
Good Production Practices (GPP): While products have to have a label claim – i.e. the label needs to list the percentage of THC and CBD – these specifications don’t have to be consistent. This means that Product “A” that a patient receives today could contain a very different THC and CBD value than Product “A” they purchase next month.
Good Manufacturing Practices (GMP): The same label claim is required on GMP products, but in this case Product “A” requirements will be the same each and every time - meaning the patient gets a consistent product that they can rely on.


10) 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


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

“Governor McCrory Signs Legislation Allowing Hemp Oil Extract Treatment” ( July 3, 2014)

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

Raleigh, NC – A rare treatment that includes cannabidiol oil from hemp plants to treat drug-resistant epilepsy, which is particularly prevalent in children, will now be available in clinical trials in North Carolina thanks to legislation signed into law today by Governor Pat McCrory.
Under the provisions of the new law, medical professionals are now able to conduct evidence-based studies exploring the safety and efficacy of treating intractable epilepsy with the hemp plant oil extract. Neurologists affiliated with University of North Carolina at Chapel Hill, Duke, East Carolina and Wake Forest universities are specifically encouraged to undertake the studies in the new law.


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


11) 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."


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

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


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

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


14) various Hemp

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


15) Tech Docs

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


16) 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

17) "Community of Companies":

http://www.otcmarkets.com/stock/HEMP/news/Photo-Release----Hemp--Inc--Subsidiary-Finalizes-the-Purchase-of-Its-70-000-Square-Foot-Industrial-Hemp-Decortication-Facility-in-North-Carolina?id=88519&b=y


Cit: “The Industrial Hemp and Medical Marijuana Consulting Company, known as IHMMCC which is comprised of a "Community of Companies." IHMMCC has been touted as the best 'connected' consulting company in the industry. Thus far, the public companies include: Dewmar International BMC, Inc. (DEWM); Resource Ventures, Inc. (REVI); Webxu, Inc. (WBXU); Green Concepts, Inc. (LKEN); Global Links Corp (GLCO); Strategic Global Investments, Inc. (STBV); Liberated Energy, Inc. (LIBE); Hollund Industrial Marine, Inc. (HIMR); Cloud Medical Doctor Software Corp (NSCT); View Systems, Inc.; and, PPJ Enterprise (PPJE), which have all mutually benefitted from the network.”


18) New agreement with VaporBrands International (VAPR)

http://www.otcmarkets.com/stock/HEMP/news/Hemp--Inc--s-IHMMCC-Signs-Agreement-With-VaporBrands--International?id=90914&b=y

http://www.otcmarkets.com/stock/VAPR/quote


http://www.otcmarkets.com/stock/HEMP/news/Hemp--Inc--Reports-2014-Third-Quarter-Results-and-Company-Update?id=92404&b=y


As for CBDs, Hemp, Inc.'s subsidiary (IHMMCC) recently signed a Consultant Agreement with VaporBrands International, Inc. (VAPR) to produce CBD oils which they plan to use in their e-cigs mentioned in a previous press release. Quality CBDs currently sell for $30,000 - $50,000 per kilo.



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.