Hemp Inc (HEMP)

[Det_Robert_Thorne]

HEMP has no ability to manufacture more

That's a mighty pretty web page showing the products that HEMP says it can make, but the problem with it is that all they have available to sell is inventory that came along with the equipment when it was bought at a bankruptcy auction in 2014.

The 1M pounds of processed kenaf fiber has been available for sale for two years, but remains unsold. Approximately 25,000 pounds of Drillwall came with the plant, as did perhaps 150K pounds of SpillSuck.

The decorticator portion isn't working yet, though in Jan, Perlowin said the plant would be operational by 2Q/16, which ends tomorrow.

There has been no mention of the start of the installation of the MacTavish line, which is required to clean the core fibers after decortication before they head to the milling operation.

Finally, though the silo (which holds the clean core fibers before milling) was erected a couple of months ago, no progress has been reported on the reassembly of the milling equipment.

Therefore, as of right now, and for the immediate future (at least three months,) HEMP has no ability to manufacture more kenaf fiber, SpillSuck or DrillWall.

Perlowin needs more cash to complete the plant, but the SEC has put the brakes on his allegedly fraudulent share-selling scheme, so where will he get the cash to finish the job?

Maybe that's why Perlowin has put out a PR saying that the company might sell all of the 5M pounds of processed kenaf (which they were bragging about for years as the raw materials for making Drillwall, Spillsuck and fiber) instead of waiting for the equipment to be operational.

And if the SEC succeeds in its case against him, he'll lose his office within the company, and will be hamstrung in trying to sell shares to raise cash.

HEMP is either (pick your metaphor):

1) A house of cards which the SEC is blowing down

2) A Potemkin Village, and the SEC is showing us that there is nothing behind Bruce's facade