Hemp Inc (HEMP)

[Gailm]

So now how the spiral works

We already know that the company burns through about $8 million a quarter just at rest.

It never has profit, just untenable and staggering losses, so it has to dump stock to survive. Lots of it, constantly.

Eventually that "leaded" rule 144 stock becomes "seasoned" and with an opinion letter from a lawyer to the Transfer Agent and the stock becomes registered and can be sold.

Allowing for "Side Letter Stock Lockups" there is still a trickle out that takes place. Up till last year that was somewhat controllable with Venture Partners in Chicago getting players to do Buy one get one or 1/2 gifted schemes (surprisingly legal if done right) and could control the trickle out.

HOWEVER..the piper comes and the price must be paid--because last year the company flooded its secondary stock market with 2.06 BILLION SHARES.

Now, no doubt the Company--AKA Bruce Perlowin expected two things to happen that didn't quite turn out as planned.

First he expected the Passing of the Farm Bill to have a much more explosive and lasting effect on HEMP shares--WHICH IT DIDN'T

and

Second, that the Revenues Reported would move the needle a few more cents. It fell flat and is now heading to new lows.

There is no magic here 1+1 still equals 2, the tidal swell of legalized hemp is backing off, new realities are starting to set in--such as this year having a glut of CERTAIN TYPES of hemp--the kind HEMP inc is involved in, and the insatiable cash appetite needed to support Perlowin's life style.

Some think its about to explode--and they would be right--just the wrong kind of explosion, one that leaves only a

CRATER!