HempAmericana Inc. (HMPQ) got the skull and crossbones flag after being flagged by the OTC Markets Group for unusual trading activity, potentially among other factors, and labeled with the Caveat Emptor classification. A true penny stock, the shares shot from one cent to three cents in one day. The company has reported no revenue but is valued at $42 million according to the OTC Marketplace.
The company’s CEO Salvador Rosillo sent a letter to shareholders saying, “We understand that this is a safety measure taken by the OTC designed as a reaction to specific markers including but not limited to remarkable stock price behavior, and its intentions are to protect the investing public. We fully support all practices that safeguard the interests of investors and protect the integrity of our public markets.”
He went on to say, “While we are excited by the recent increase in liquidity and interest by an apparent range of new investors in shares of HMPQ stock, potentially including larger financial institutions, we are aware of no explanation for the dramatic rise in interest and liquidity beyond that of simply an increasing recognition of the Company’s efforts to drive future value for shareholders. We have been actively pursuing a range of grass-roots marketing pathways, including magazines and similar outlets, to drive further value to shareholders as part of a robust effort to drive growth for the Company.”
The company has paid $71,000 to OTC Tip Reporter and $71,000 to Stock Prophet to promote the company through the end of 2017. Buzz Stocks was also paid $71,000 for the same time period. In addition to these outlets, Epicstockpicks.com was compensated $20,000 cash via bank wire by a third party, Awarness Consulting Network LLC for a one-day HempAmericana Inc. promotion.
The list of promotions continues…….PennyStockGeneral.com was compensated $3,000 via electronic transfer from a non-affiliated third party for the profile of HMPQ. ShiznitStocks.com was compensated $3,000 via electronic transfer from a non-affiliated third party for the profile of HMPQ. ValueStockPick.com is a web property owned by Brilliant Innovators and was also compensated $6,000 cash via bank wire by a Sand Stone Marketing LLC to conduct investor relations advertising and marketing for HMPQ. This is not the complete list of promotions.
Rosillo continued, “We will be in close communication with the OTC Markets Group going forward, and stand ready to provide any aid necessary in assisting them with any questions that may arise due to our increase in liquidly.
Several days ago, we issued a press release announcing final construction activities at the facility, with major equipment deliveries on schedule and expected in coming days. This includes the delivery of our new 200-liter supercritical CO2 CBD extraction machine – the highest-capacity state-of-the-art CBD extraction machine produced by the manufacturer. Full-capacity production is scheduled to start shortly thereafter.
As it happens, our timing apparently could not be better. Growth in the CBD oil space is now widely projected to outpace that of the broader cannabis-related market segment, which is itself widely projected to outpace nearly every other sector on the planet over the next six quarters.
We will continue to remain passionately committed to realizing our vision of becoming the leading high-capacity CBD oil producer in business today. Further updates will be forthcoming shortly.”
The OTC Position
OTC Markets Group monitors for potential promotional activity relating to securities trading on our markets. We review for anonymous paid promotions, possible connections to bad actors, and evaluate the promotions potential impact on trading.