Diversified conglomerate Sipp Industries (OTCPK: SIPC) has received an order for 2,000 pounds of organic bulk hemp seed from an unnamed new customer. Sipp described the initial order for deshelled hemp seed as coming from an innovator of all natural food products that are allergen-free and made only from organically grown ingredients.
The company added that it anticipates follow-on orders from the new customer in coming quarters, with expectations that the orders will gradually increasing in size.
Separately, Sipp’s wholly owned subsidiary Major Hemp, was chosen to provide bulk hemp protein powder and hemp flour to a different customer wishing to evaluate new products that have organic hemp as the main ingredient. Major Hemp is a provider of bulk hemp, cannabidiol supply, co-packing and private labeling services.
This news appears to be the culmination of negotiations disclosed late in July stating the Major Hemp was in final discussions on an agreement with an established “large retail supplier of raw bulk ingredients” for companies such as Kroger (NYSE: K) and Whole Foods Markets (NASDAQ: WFM). The company remained unnamed in today’s release, but the description was similar.
“Working with such an esteemed client will open the doors further, penetrating the U.S. organic hemp market which is in high demand,” commented Ted Jorgensen, President of Major Hemp, in today’s news announcement.
According to Sipp CEO Syman Vong, purchase and fulfilled orders during this quarter have already surpassed revenues from the second quarter. As the company’s customer base keeps expanding, Vong expects revenues to keep rising.
Shares of SIPC, which have climbed in recent weeks from $0.004 to as high as $0.0063 are sliding lower in Wednesday morning trading, down 10.3% at $0.0057.
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