HPCO
Industry:
Consumer Staples Producers

DESCRIPTION

Hempacco manufactures and sells nicotine-free, tobacco-free smokable products made from hemp and herbs, targeting smokers looking for cigarette alternatives. Hempacco uses proprietary terpene-spraying and flavored filter infusion technologies in its manufacturing process, which it also licenses to third parties. The company sells through three channels: in-house brands (sold through convenience stores in the San Diego area via master distributors and patented counter displays), private label manufacturing for third-party cannabis and tobacco-alternative brands, and celebrity joint venture brands including Hemp Hop (with Rick Ross) and Cheech & Chong-branded smokables. Hempacco also owns roughly 600 vending machines it plans to use for distribution under its HempBox Vending brand. A secondary business, Green Star Labs, provides contract manufacturing for nutritional supplements and beauty products. Revenue is driven by product sales, private label manufacturing fees, IP licensing, and joint venture arrangements. Hempacco's San Diego facility can produce up to 10 million cigarettes per month, making utilization of that capacity a key earnings driver. The company is pre-profitability and has relied on dilutive convertible notes and equity raises to fund operations, and has disclosed going concern risk.

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