LAS VEGAS, Jan. 2, 2015 (GLOBE NEWSWIRE) -- Hemp, Inc. (OTC:HEMP) updates its shareholders today on its decortication plant in North Carolina. In continuing to ensure the company's future success, CEO Bruce Perlowin, visited the decortication plant in North Carolina last month to meet with his Project Officer and contractors. During a series of meetings, Perlowin was able to review the budget and make necessary changes, meet with specialists to potentially contract with, inspect the grounds and equipment for optimal efficiency, inspect theKenaf on-hand, and review security measures being taken. (Click here for video.)
As previously mentioned, Perlowin's personal guarantee to the company's future success in its next critical phase was proven in the initial strategic decision to negotiate the purchase of the automated Temafa decortication line which can be used to process raw hemp and Kenaf for the American farmers. "A lot has happened since we first purchased our plant. The initial budget of 1.2 million almost doubled, as it increased to 2.3 million dollars to disassemble and move the equipment from its initial location to its current home to reassemble it and get it operational, so we've had to make a lot of adjustments with funding decisions," said Perlowin, CEO of Hemp, Inc. (OTC: HEMP).
One of those adjustments included redirecting funds that the company stated it committed to kick-starting the search for an appropriate banking partner in Colorado and due diligence thereof. In May of 2014, Hemp, Inc. announced it was looking to invest $1,000,000 in a banking venture in its continuing efforts to moving the industry forward by being a part of supplying their financial needs in a rapidly growing market. However, while the company had good intentions to do so, due to increased costs to set up its decortication plant, executives decided to redirect the banking venture funds to support its primary focus of the decortication plant.
According to Perlowin, Hemp, Inc. executives plan to revisit the one million dollar banking venture later this year, after the decortication plant is fully operational. "While we support our American farmers, it is currently illegal to grow hemp in North Carolina. The money originally earmarked for the bank was reallocated to assure the plant would be up and running as quickly as possible. This puts Hemp, Inc. in an excellent position when North Carolina legalizes hemp."
"This was just one of a few changes that needed to be made in order to ensure Hemp, Inc.'s continued success. While we try to do everything we can to lend support to the different areas of this industry, we must remain focused on our core competencies to ensure our success and the success of our shareholders," said Perlowin. "This is a work in progress and changes are inevitable. For example, we previously reported 15 million pounds of Kenaf could be sold. After careful inspection, a large percentage of that amount was found to be unusable due to mold and other environmental factors. I believe we ended up with about 4 - 5 million pounds instead of 15 million."
The company will continue to process Kenaf until hemp can be legally grown in North Carolina. While demand for Kenaf is not as great as hemp, there is a demand for this processed substance. Kenaf has a history of being an important source of bast or cordage fibers used in the manufacturing of rope, bagging and other coarse fiber products."
Hemp, Inc.'s decortication line is the only one of its magnitude in North America. The highly coveted decortication line is currently the only commercial, large-scale machine of its kind in North America. According to Perlowin, it would take at least 2 years, minimum, to duplicate the line. Hemp, Inc. and its whole team is committed to the American farmers and plans to continue spearheading a new clean, green American Agricultural and Industrial Revolution based on hemp and hemp products.
As previously stated, the replacement value (the cost to duplicate this today) of the decortication and milling plant, the 70,000 square-foot warehouse (with a 6-inch cement foundation and a refrigerated section), the semi trucks, forklifts and other equipment, and millions of pounds of processed Kenaf exceeds $20,000,000. However, since the plant, Kenaf and the new warehouse and acreage was purchased through the bankruptcy court, the company only paid a fraction of that cost, thereby getting a great deal for Hemp, Inc. and its shareholders.
"We will continue to keep our shareholders and the public updated with any changes," said Perlowin.
ABOUT HEMP, INC. (OTC:HEMP)
Hemp, Inc. (OTC:HEMP) focuses on the vast market created by the quickly emerging, and growing, multibillion dollar industrial hemp industry. Hemp, Inc. (OTC:HEMP) is not currently involved in the cultivation or marketing of medical cannabis, at this time. (www.hempinc.com). Instead, our focus is on industrial hemp and the myriad of uses (over 25,000 products made from hemp that the hemp plant offers) in creating a new clean green American Agricultural and Industrial Revolution.
Update on Hemp, Inc.'s Decortication Plant
After months moving from its original location to its current home, the Temafa and Macintosh line of equipment, the mill and the Kenaf is 100% completely moved. Everything is now in its new facility being assembled and organized, as Hemp, Inc. sets up shop. To see a time lapsed video on the disassembly and moving of the equipment, click here. Executives anticipate the facility to be fully operational by the end of the first quarter in 2015. The bulk of Kenaf on-hand will be processed for fiber and Lost-Circulation Material (LCMs) for the drilling industry.
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