Hemp Inc (OTCMKTS:HEMP) has fired the first warning shot, highlighting how serious it is about pursuing growth opportunities in the multi-billion medical marijuana business. The leader in Industrial hemp through its subsidiary Industrial Hemp Manufacturing has signed a letter of intent for the purchase of 1,000+ acres of Hemp.
The agreement is for hemp that is to be harvested in BioRegen’s land in Eastern Northern Carolina. Harvesting of the hemp in question is slated for the end of next year. This will be the first Hemp crop in the state following the legalization of medical marijuana last year.
The signing of an agreement with BioRegen’s does not come as a surprise given that Hemp Inc runs a multi-purpose hemp processing plant 75 miles from the farming land. The same should allow the company to process millions of pounds of hemp fibers with ease.
“Instead of leaving the stalk in the fields to be wasted, or in some cases burned thereby polluting the environment, we have the infrastructure in place to take that wasted fiber and process roughly forty million pounds per year… and that’s just with our Temafa decortication line said CEO, Bruce Perlowin.
Pivotal U.S Election
The timing of the Letter of Intent could not have been better given the expected expansion of the target market as more states move to legalize the same through voting. Nine states are poised to vote for the legalization of the federally prohibited plant in what experts believe will expand the target market.
Hillary Clinton winning the November 8 election should also act as a big lift for the fast growing industry given she seems more lenient in legalizing marijuana something that could help in the expansion of the target market.
Even on growing investor interest in cannabis stocks, Hemp Inc (OTCMKTS:HEMP) faces major hurdles if it is to attract the near attention that other stocks are receiving. The arrest of its CEO, Perlowin early in the year over fraud charges is a dark cloud that could affect the stock’s sentiments on the street.