We haven’t talked about HempAmericana, Inc. (OTCMKTS:HMPQ) in quite some time, but wanted to do so today, in keeping with our pledge to focus on cannabis related stocks in advance of tomorrow’s 04/20 holiday.
The company researches, develops and sells products made of industrial hemp, including CBD Oil. HMPQ also carries other non-hemp based products but focuses primarily on hemp. Practically anything that can be made with plastic can also be made with industrial hemp, and HempAmericana desires to fill the growing need and demand for hemp based products here in the United States.
In the last week, HempAmericana, Inc. (OTCMKTS:HMPQ) has provided multiple updates on its activities, beginning with has now fully secured sufficient hemp input supplies to fuel extraction and processing operations at its state-of-the-art Augusta CBD Oil facility for 2018 CBD Oil production activity.
According to management, the Company has been working with farmers throughout the state of Maine to lock up sufficient supply material through existing farm capacity while avoiding initial overinvestment in pre-sale capital expenditures. Thus far, HempAmericana has guaranteed itself a minimum allocation of the yield from 85 acres of CBD-rich hemp.
The Company conservatively estimates 1 lb. per plant of flower for extraction, which suggests roughly 106,250 lbs. of input hemp stock for processing by this fall (or as much as $20M in total sellable CBD Oil production, according to current market pricing for 99%-pure high-potency CBD Oil products).
HempAmericana CEO, Salvador Rosillo, commented, “Having already locked up input materials to power operations this year is a big advantage at this stage. Going forward, we will be able to focus on perfecting the extraction process and fulfilling our promise of generating the new benchmark for high-quality, high-potency CBD Oil.”
The Company has been working with regional farmers over recent months, supplying them with seeds from CBD-rich strains in anticipation of locking in supply arrangements. Management notes that the Company will be testing finished stocks at harvest and purchasing at that time at market pricing minus cost of seeds.(Source: Globe Newswire)
A day later, HMPQ announced that it has begun to actively explore international distribution partnerships. The move comes as the Company nears the imminent launch of full-scale production activity at its new, state-of-the-art Industrial Hemp extraction and processing facility in Augusta, Maine.
Management believes that one major factor driving accelerating demand for Industrial Hemp exports from N. America to large international markets is poor domestic production in countries like Germany. Because of slow legal progress, Germans plan to support one of the fastest growing consumption markets almost exclusively on imported Industrial Hemp. According recent press, the EU’s largest economy expects to rely on imports to meet hemp demand for at least another decade.
HempAmericana CEO, Salvador Rosillo, commented, “This is one of the reasons we have moved so rapidly to ramp up high-capacity production activities early this year. Domestic demand growth is booming, but so is the export potential. We plan to be a major player on both levels, and to be the market leader in potency and quality along the way.” (Source: Globe Newswire)
The whole of the cannabis space will enjoy heightened visibility, essentially from now through the end of 2018. There are many key dates coming up for the industry which has been growing incessantly for over half a decade now. HMPQ is a promising player in the hemp market, and one will continue to track. Keep it locked to Street Register for updates, and we’ll deliver important developments on HMPQ to you as they unfold. In the meantime, if you’ve yet to sign up for our 100% free newsletter, do so now! Just enter your active email address into the box below and submit!
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in HMPQ stock, short or long.