Despite recording a huge success of improved Kush Cakes, Hemp Inc (OTCMKTS:HEMP) has failed to amass enough of the investors’ interest. The company released a number of press notes highlighting the smooth progress of its re-launch of Kush Cakes event in association with Dewmar International BMC, Inc (DEWM). The re-launch of the product took place at Big Industry Show in Denver, CO in between April 14-15, 2015.
Big Industry Show
The show holds importance for the company as it is recognized as one of the biggest trade shows, where a number of manufacturing, distribution and wholesale companies from the smoke industry participate. The Kush Cakes, which were re-launched during the show, were infused by Hemp. Reportedly, Dewmar International offered 2,000 free samples of the Kush cakes during the show. Hemp Inc (OTCMKTS:HEMP) as well as Dewmar noted that the new Kush cakes, being manufactured in Colorado have more shelf life over the original ones. Hemp Inc (OTCMKTS:HEMP) claimed that they have received multi-thousand orders for Kush cakes during the first day itself.
But, if such was the response for the Kush Cakes then why the company failed to gather such an attention on the bourses? The reason being simple, Hemp Inc (OTCMKTS:HEMP)’s poor annual report for the year 2014. As per the report for the period ended on December 2014, the company reported $243,000 as cash balance and $3.5 million in current assets. The company’s liabilities are manageable at $1.4 million.
However, the eyebrow-raising fact was the company’s $904,000 net loss and sales of $7.95 million. Most of the revenues attained by the company was through its consulting service and not core business of marijuana, which is worrying. As long as the company does not clarify about its revenue breakup, it is likely to fail in investors’ eyes.
The stock of Hemp Inc (OTCMKTS:HEMP) closed 1.02% lower at $0.0195 during the previous trading session, when a total of 13.24 million shares exchanged hands.