Generation Hemp (OTCQB:GENH) Inc, a midstream hemp company, and its wholly-owned subsidiary GENH Halcyon Acquisition LLC reported that its unaudited revenue for July this year was approximately $438,000, which is a record for any single month since the company was founded.
The Dallas, Fort Worth-based company said the bump in revenue is predominantly the result of a significant increase in processing of hemp biomass for certain clients, along with the presale of certain inventory that the company had intentionally stored over the past year and a half.
In a statement, Generation Hemp CEO Gary C Evans said: "We anticipate that these record revenue numbers will continue throughout the entire third quarter due to existing contractual agreements in place that are being fulfilled.”
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“The hemp industry over the last several years has been very volatile and because of this price variation for hemp biomass, many companies were overleveraged and didn't have the proper funding to survive a downturn that occurred. Fortunately, we were in a position to take advantage of the situation by acquiring significant amounts of raw biomass inventory over the past couple years and storing this product in our warehouse facility located in western Kentucky.”
Evans noted that this in turn created an opportunity for the company to "sit and hold" millions of pounds of unprocessed biomass in hopes that the market environment for hemp would improve.
“That price improvement, which we had anticipated, has continued to occur throughout most of calendar year 2022,” he added. “Therefore, our shareholders are now reaping the benefit of this decision."
With operations in western Kentucky and Denver, Colorado, Generation Hemp uses its proprietary technology to dry, clean, process and store hemp. In addition, Generation Hemp also owns and leases real estate to companies needing seed storage facilities located within the greater Denver area.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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