Hemp Inc (OTCMKTS:HEMP) Adds 15%

Hemp Inc (OTCMKTS:HEMP) has been on a three-day climb since Thursday increasing its price by over 20%. HEMP racked up a volume of over 20 million shares and closed yesterday’s session at $0.0307.

HEMP‘s latest news comes from a PR issued on Sept 25, and their most recent filing is from Aug 19. The company has been quite diligent with its webpages, updating them regularly. For example, on Oct 17, HEMP uploaded a bunch of pictures from its new decortication plant on the company’s Facebook page.

The aforementioned decortication plant is located in North Carolina and its purchase was announced in a press release from Sept 25. According to the PR, the plant is set to begin operations in the “first quarter of 2015”. Time will tell whether the plant will in fact open according to schedule.

HEMP‘s latest filing was from Aug 19, and it was the quarterly report for the three months ended June 30. It showed the company had working capital and a net income instead of a loss, as is usually the case with Pink tier companies. The company’s revenue might seem impressive at first, but the quarterly explains that the number comes in the form of “equity securities” “for services rendered to six corporate customers”. Such was the case with the revenue amount for the previous quarter, only it showed a bigger number and involved eight corporate customers. The fact that they hold $42.8 thousand in cash shouldn’t be ignored, either.

Before deciding whether or not to put money on the stock, potential investors should consider the fact that out of the 3 billion authorized shares, 2.5 billion are listed as issued and outstanding. Quarter over quarter, the O/S has grown by approximately 400 thousand shares. Should HEMP continue printing shares at such a pace, the company will surely need to increase its A/S limit.

Investors will do well to familiarize themselves thoroughly with the details surrounding HEMP, before committing to its stock.