Hemp Inc (HEMP)

[Det_Robert_Thorne]

Then why did Biotech Mills go bankrupt?

Hemp inc., has 5 million pounds of kenaf; 5 million pounds will make about 3.5 million pounds of loss circulation materials that is green lcm. Oil companies want three to five year contracts for LCMs, some pay $5 a pound for it. I think $3-$5/lb is the price range.

Biotech Mills (AKA, Kenactiv Innovations) owned and operated the plant after buying it from the tobacco company which built it. Biotech was making DrillWall and selling fiber from the Kenaf.

In 2012, the year before it went bankrupt, it lost $9M and in 2013 it lost $4M and filed for bankruptcy with, IIRC, $10M in debt and a million or so in assets.

When HEMP bought the equipment at auction for $165K, it also received 15M pounds of kenaf, several tons of process fiber, and 24,000 pounds of Drillwall LCM.

When it moved the equipment to the new building (also bought at auction from a bankrupt produce company,) HEMP found that only 5M pounds of the kenaf was acceptable for processing.

In the two years since HEMP bought the equipment and been rebuilding the plant, only a few tons of the processed fiber has been sold -- and that was to one of Perlowin's partners in the Kins Domain development in Arizona -- and none of the DrillWall has been sold.

HEMP has also spent $4M - $5M on the building and the installation. Funny thing, by the way, HEMP probably could have bought the complete, fully assembled Biotech plant for $2M - $3M and been in operation almost immediately.

If Biotech Mills went bankrupt selling the same kenaf-based products, why do you think that Hemp will be successful at it?