Hemp Inc (OTCMKTS:HEMP) has been dedicated to using clean energy for its industrial operations. The company recently updated its shareholders on its decortications facility in North Carolina. Hemp has successfully installed the new Guard Lite Security Lighting system on the facility. Reports suggest that the COO, David Schmitt, is planning to meet with Duke Energy to sell excessive power back to the national grid.
Hemp focuses on the industrial Hemp sector and with the legal cannabis industry as well. The company’s new decortications plant is a key part of its portfolio. The facility is planned to be completely automated and hence would require tremendous power to function. The objective of the facility is to separate fibers from the core of a hemp plant. This is a one of a kind facility in North America, but has great potential for commercialization. Farmers would be able to get their raw hemp converted to base products, which can then be marketed to other companies.
Hemp would hope to turn things around, once the facility starts functioning. In the second half of 2014, Hemp reported less than $100,000 in revenues and had less than $250,000 in cash. Additionally, the net losses stood at $904,000. The numbers are not very encouraging and in order to keep things going, the company has turned towards severe dilution. Hemp needs a product line and fast, the company is allowed to issue 3 billion shares, a number which it is fast approaching.
Hemp bought the decortications line last year and so far it has not started operations. However, if the company is able to convince Duke Energy to buy excessive power from the Guard Lite system, it may give them some compensation to complete the facility, without further dilution. The decortications facility is a definite turning point for the company, but only if it starts operations soon.
Hemp Inc (OTCMKTS:HEMP) closed at $0.0202, after losing 10.22% on May 19. The company has 2.67 billion shares being traded in the company, with a 52-week range of $0.02-$0.08.