Hemp Inc (HEMP)

[Det_Robert_Thorne]

Perlowin made that claim. Why isn't it running?

It was CEO Perlowin who made the claim that the equipment was appraised in "very good" condition, yet despite Bruce's statements that he could make a lot of money decorticating kenaf then selling the bast fiber to industry and the pure core to oil drillers, he never completed the plant, and instead opted to spend $1M or more to build a grinder setup that creates a product that few want.

When HEMP bought the decorticator in 2014, it had no convertible debt and no "Property, Plant, and Equipment".

By mid-2016, when the SEC brought charges against Perlowin and Epling*, it still had no convertible debt, but had spent millions in Spring Hope, claiming that the PP&E was worth $3.8M, and yet the plant still wasn't running.

In the most recent report, HEMP now has nearly $19M in convertible debt, $8.5M in other liabilities, and the plant still isn't generating significant revenue. The photos on the company website don't show any changes or improvements to the decorticator area of the facility.

How could he spend that much money and NOT complete the plant?

You don't spend $19M on geodesic domes in the Arizona desert or drying sheds and some greenhouses, especially when you have a partner to split the cost.

Earlier this year, the plant went to 4-day/week operation from 5 days/week, and a dissection of HEMP's convoluted financials show that it might have generated only $30K of revenue during 3Q/19.

Yes, Perlowin is focusing his efforts on CBD-rich hemp for CBD and smoking, but why doesn't he appear to have ANYONE working to complete the Spring Hope plant, especially when in that speech, he's essentially claiming that he is leaving money on the table?

It's because the decorticator is broken, or is just a prop.


* I only bring up the SEC action because it was that event that caused HEMP to change its financing to mostly convertible debt.