Hemp, Inc. Acquires American Sustainable Rubber Company, LLC

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Las Vegas, NV, Nov. 24, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Bold moves, strategic partnerships and expanded capabilities, Hemp, Inc. (OTC PINK: HEMP) is on a mission to be a powerhouse of social change and economic revival and sustainability. In an all-stock transaction, the Company purchased a 100% membership interest from United American Healthcare Corporation (UAHC), a diversified holdings company, to acquire full ownership of American Sustainable Rubber Company, LLC (ASR), which is pursuing large-scale production of natural rubber through a genetically modified rubber source at The Ohio State University. The acquisition will enable Hemp, Inc. to leverage ASR’s proprietary intellectual property to improve its hemp grows and harvesting.

“This is Hemp, Inc.’s second major acquisition in less than 3 months. Our first acquisition was in September, of this year. We acquired Ferris Holding, Inc., a leading co-packer and manufacturer based in Las Vegas, Nevada. This allowed us to expand our product launches in the global hemp market. And now with the ASR acquisition, I couldn’t be more excited and inspired by the momentum we’re gaining as we continue to fortify our competitive positioning and aggressive marketing strategy. These strategic acquisitions allow us to develop new avenues of long-term profitable growth that I’m sure our shareholders will appreciate," said Jim Hancock, President of Hemp, Inc.

Before we get into how this acquisition is a win-win for Hemp, Inc. and its shareholders, let’s address the immediate question of, “Why rubber?” And if you think rubber doesn’t affect you, think again. It’s used in over 40,000 commercial products every day. From the obvious auto tires which help you commute to and from work, plane tires that help you travel around the world to the clothes on your back, toys kids play with, and the shoes you have on your feet, rubber is an integral part of our lives.

Integral may be an understatement. Rubber is a critical raw material and is considered “strategic material” deemed critical to National Security by the U.S. Department Logistics Agency. This year (March, 2021), the U.S. imported $140 million in raw natural rubber. That’s a far cry from the $1.6 billion imported in 2017. The Ohio State University professor and Scientific Advisor to ASR, Katrina Cornish said, “We could be on the cusp of a rubber apocalypse.” Maybe not an apocalypse but a looming shortage is very possible.

Key contributing factors to a possible shortage are: cyclical pricing disruptions (fluctuating prices from volatile market conditions); climate change (tsunamis/typhoons and major flooding that can wash out entire crops); disease (leaf blight fungus that can also wipe out entire crops); and Covid-19 (less workers to harvest the crops). It takes 4-7 years before rubber trees are mature enough to be tapped for latex (the milky sap that is inside of the tree). So, when these key contributing factors wreak havoc on rubber crops, it takes years to harvest another crop. In our fast-paced lives, do we really have that kind of time?