Hemp, Inc. (OTCMKTS:HEMP)’s PR News Encourages Investors
At the start of the year the hot trend was for all kinds of companies to switch to the medical marijuana industry. Immediately after the announcement investors would start flooding in and bringing the shares of the company to unseen heights. Well the hype could last for just so long and since February the whole sector has been on a constant downwards spiral. Hemp, Inc. (OTCMKTS:HEMP) are no exception.
After briefly touching on $0.11 five months ago the company has been suffering greatly. They had fallen to just 2 cents on massive traded volume of nearly 19 million shares. Despite the general stagnation of the sector HEMP have been going along with their business plan. The latest news they released was about the cultivation of their crops in China going according to schedule.
But the more important part in the article was that the actual retail value of the harvest could reach $2 million. Even though this is just a forward-looking statement made by the company themselves investors were quick to react. And in a long while the stock of HEMP managed to close the day in the green. They added the respectable 20% to reach $0.24. Today the positive trend seems to have lost steam and the stock is around 7% down in morning trading.
While they were slumping on the stock chart HEMP have been able to actually improve their financial results. According to the quarterly report for the period ending March 31 they had:
- $29 thousand cash
- $414 thousand total current assets
- $1.1 million total current liabilities
- $426 thousand revenues
- $333 thousand net loss
Still there is a long way to go before HEMP can achieve a positive bottom line. For now they are continuing to rely heavily on their common stock resulting in an increase from 1,07 billion to 1.25 billion outstanding shares in just 3 months.
The namesake of the industry – Medical Marijuana, Inc. (OTCMKTS:MJNA), has also shown some sings of revival with a couple of positive session in a row. But shareholders’ excitement might have been short-lived because the stock is going down in early trading.
The major news that hit the OTC market yesterday is the suspension of the stock of Biozoom, Inc. (OTCBB:BIZM). SEC stated that certain affiliates or shareholders of the company may be involved in an unlawful distribution of securities through the OTCBB. What promped SEC to take action against BIZM most likely was the enormous pump campaign that had been going on for a month.
