Replies to post #48698 on Hemp Inc (HEMP)

[Bud-Wiser]

Thanks for that research . It seems like you are the real detective...

[Det_Robert_Thorne]

An error in spreadsheet doesn't change overall point

Whenever one of these consulting deals is announced, the usual routine is for the "consultee" to release a PR announcing it is working with HEMP, then two days later, HEMP issues a PR stating that the deal was signed, usually at the price of the day before.

Note that the Feb 5 PR was from REVI, not HEMP:

SILVERADO, CA–(Marketwired – Feb 5, 2014) – Resource Ventures, Inc. (PINKSHEETS: REVI) is pleased to announce ...

The Feb 7 PR is from HEMP:

LAS VEGAS, Feb. 7, 2014 (GLOBE NEWSWIRE) -- Hemp, Inc.'s (OTC:HEMP) wholly owned subsidiary, The Industrial Hemp and Medical Marijuana Consulting Company, Inc. (IHMMCC), is pleased to announce ...

I rechecked my spreadsheet where I've recorded the value of the stock payments as the press releases outlining these consulting deals were released, and found that I had transposed the numbers for the PR from REVI and the next day (the signing day), so where I should have recorded Feb 4,5,6,7 as $0.0063, $0.0499, $0.035, and $0.062, I had switched the $0.035 and $0.0499.

Your post caused me to notice the error that I should have used $0.035 instead of $0.0499 in my prior post. Thanks for that.

However, my overall point remains, that for HEMP (not short-term traders of REVI,) the deal is so far bad, for the following reasons:

1) The REVI stock is restricted, and HEMP has to hold it for one year. It won't be able to sell the 30M shares it received in 1Q/14 at $0.035 until Feb, 2015

2) REVI continues to dilute its shares, and it raised its Authorized Shares to 2.5B in 2Q/14.

At the end of 2Q/14 REVI reported 1.086B shares outstanding, with 2.5B authorized. At the end of 1Q/14 it had 357M outstanding shares, with 800M authorized..

In one quarter, REVI increased its OS by 729M, and tripled its AS.

It will be interesting to see how much more dilution there is by Feb, 2015.

HEMP's shares of REVI will probably be worth even less in 1Q/15.

[OTCBULL]

You got the timeline right my friend ;)

$REVI