Hemp Inc (HEMP)

[Det_Robert_Thorne]

Did you watch the videos or read PR?

The presentation was pathetic, and the information more so.

Hemp, Inc is an industrial hemp company, not a marijuana company, with delusions of being a major supplier of industrial hemp fiber and consulting services, and eventually, if Bruce's ramblings are to be believed, a supplier of high CBD hemp oil.

Unfortunately:

1) As is painfully obvious from the video and the PR, there will be no hemp to process until 2016, unless the NC legislature gets crackin', and there's no evidence of that. The amount of usable Kenaf is 5M lbs, not the 15M lbs initially described (10M had to be dumped because of mold).

From the PR of a few days ago:

The final tally on the 15 million pounds of Kenaf we got for free with the purchase of the machinery is 5 million pounds as the majortiy [sic] of it was not up to our standards to be worth moving to our new facility.

Disposing of the unusable kenaf will probably eat all the profits from processing the usable stuff, unless they can sell the dry kenaf so some type of co-generation facility that will burn it for energy.

Heck, the company is even beginning to spend more time talking about kenaf as a useful crop, which means they've bailed on the idea of getting hemp for 2015.

But there really isn't much of a market for kenaf in the U.S., either.

2) The consulting business is a complete bust, as most of the shares of the clients have lost a lot of their value, some have had reverse splits, another essentially delisted, and the rest are sucking wind.

3) By the time Perlowin loans enough money to the company to make some CBD oil from hemp, there will be many, many competitors in the space, not to mention that in states where CBD from high CBD strains like Charlotte's Web is legal, that high CBD oil sells for one sixth the price of a high-profile CBD company's (located in San Diego) similar-level-of-CBD product.

HEMP will lurch from "opportunity" to "opportunity", losing money all the time, while the CEO loans money to the company (probably from the sale of his own personal stash,) then takes repayment in preferred K shares, which eventually are exchanged to 10X the number of common shares.

Eventually, he'll own 70% of the shares, which the shareholders will have actually bought for him.