HempAmericana Inc (OTCMKTS:HMPQ) shares should be on the radar for two simple reasons.
First off, the company is a prime CBD play with a well-known brand for small-cap equity market players. The company has been slow to make good on its promise in recent years, but it finally looks like the ship is coming in.
After stocking up a big inventory of high-quality product, HempAmericana is finally starting to book some serious sales. In fact, the shift has apparently been so dramatic that the company was caught off guard.
Now, here we are, with commercial activity cooking along, and the company is starting to ramp up production in response as inventory gets drawn down. That’s exactly what you want to see if you are looking for early signs of prepotent growth.
A Good Problem
Specifically, the company just announced that it has begun to substantially increase its rate of production of CBD-based products in response to stronger than anticipated ecommerce demand following the full launch of its online sales portal.
According to the release, the company is also excited to report that, due to this strong market response, HempAmericana will be upgrading its ecommerce platform to further amplify its digital presence and drive further growth in sales.
“We have seen a massive market response as we ramp up our initial ecommerce distribution activity,” commented Salvadore Rosillo, CEO of HempAmericana. “It’s working. And our number one concern is delivering shareholder value, which means we are ready and willing to facilitate further expansion through this channel.”
Ride the Wave
The second reason to watch here is the news that US lawmakers are pushing further toward legalization of cannabis in the US. The House Judiciary Committee approved a Bill on Wednesday that would decriminalize marijuana at the federal level. The Marijuana Opportunity Reinvestment and Expungement Act of 2019 (the “MORE Act”) passed by a wide margin, 24-10, with bipartisan support.
HempAmericana management came out quite obviously in favor of the move, which holds the potential to level the playing field for the cannabis and hemp-related products marketplace, laying a foundation whereby companies in these industries will be treated as law-abiding citizens, gaining access to the infrastructural resources that other industries take for granted, such as the banking system.
Mr. Rosillo continued, “After everything we’ve invested in this process, it’s tremendous to see the wheels in motion and product going out the door. The fact that it’s going out the door faster than we anticipated is a great problem to have. And we know exactly how to deal with it. It’s also terrific to see the gradual and seemingly inexorable process of full cannabis legalization in the US speed up a notch. We’re very excited about the opportunities that lie ahead.”