Hemp Inc (OTCMKTS:HEMP) Slips After Some Positive Sessions

[[tagnumber 0]][[tagnumber 1]]Undoubtedly, Hemp Inc (OTCMKTS:HEMP) has had a terrible year so far in which it has lost quite a lot of its value. We rarely see the ticker close in the green and the stock is slowly, but surely, losing its altitude.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]In the meantime we see that daily volumes have somewhat increased in the past several months. The sad situation in which [[tagnumber 6]]HEMP’s[[tagnumber 7]] stock and its shareholders have been for quite some time now isn’t surprising, especially when you take a look at what the company had to show for the first quarter of the year.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 11]] [[tagnumber 12]]cash: $630 thousand[[tagnumber 13]] [[tagnumber 12]]current assets: $2.47 million[[tagnumber 13]] [[tagnumber 12]]current liabilities: $1.32 million[[tagnumber 13]] [[tagnumber 12]]revenues: $6,223[[tagnumber 13]] [[tagnumber 12]]net loss: $979 thousand[[tagnumber 13]] [[tagnumber 22]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Looking at the same period last year we see that the revenues have decreased by a whopping 98.5% while the net loss has tripled. Add that to the delays in the assembly of the company’s decortication plant in North Carolina and things get a bit uglier.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]However, it really gets horrible when you take the massive dilution into consideration. According to the latest quarterly report that HEMP has filed there were over 150 million shares of preferred K stock. Each share of preferred K stock can be turned into 10 shares of common stock.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]And let’s not forget that, as we predicted some time ago, [[tagnumber 6]]HEMP[[tagnumber 7]] did indeed increase its authorized share count from 3 billion to 5.5 billion. Considering that there are more than 2.7 billion outstanding shares there is a lot of room for dilution.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]These are most probably just some of the reasons for which, despite the recent fluff PR, [[tagnumber 6]]HEMP[[tagnumber 7]] didn’t manage to maintain its small upward run and crashed 10.48% in yesterday’s session, closing at $0.0111 per share.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]So far, the company stock is doing good in today’s session and is 8.11% as of the writing of this article. This, however, doesn’t mean that [[tagnumber 6]]HEMP[[tagnumber 7]] can’t drop below the 1 cent per share mark, so be sure to do your due diligence and weigh out the risks before making any investment decisions.[[tagnumber 2]]