SAN DIEGO - Hempacco Co, Inc. (NASDAQ: HPCO), a leader in herb and hemp-based product manufacturing, has announced the acquisition of assets from three companies: Simtech LLC, MJAC Vending LLC, and Bear Air, LLC. This move is set to expand Hempacco's vending machine operations and product offerings significantly.
Under the agreement, Hempacco will gain 120 Nayxs and vending machines, including over 77 active booth placements and Disney-branded kiosks previously owned by Simtech.
Hempacco's subsidiary, Hempbox Vending, Inc., will undergo a rebranding to become "Celebrity Vending," managing at least 100 vending machine kiosks. These kiosks will sell Hempacco's celebrity-branded and Disney-branded products, with VDL tribe approval for casino placements.
David Simchon, the Chief Executive Officer of Simtech LLC, will become CEO of Celebrity Vending after the closing of the deal. Both company leaders have expressed optimism about the acquisition, foreseeing growth and innovation in the vending industry as a result of their collaboration.
Hempacco's diverse operations include the research and development of D9 and mushroom beverages, manufacturing of vapes, hemp smokables, and rolling paper, as well as the production of cosmetics, nutraceutical products, and branded gummies. The company is known for its Real Stuff™ brand of functional hemp cigarettes and rolling paper.
Simtech LLC is recognized as a leading provider of innovative vending solutions, while MJAC Vending focuses on vending operations expansion, and Bear Air offers specialized aviation services.
This strategic acquisition is part of Hempacco's broader goal to disrupt the nearly $1 trillion tobacco industry with alternative products. The company is a majority-owned subsidiary of Green Globe International Inc. (OTC Pink: GGII), a consumer goods incubator.
Despite the forward-looking nature of this press release, it is important to note that such statements are based on current expectations and projections and are subject to risks, uncertainties, and assumptions. Therefore, actual events and results may differ materially from those expressed or implied by these forward-looking statements.
This article is based on a press release statement, and the information contained herein has not been independently verified.
In other recent news, Hempacco Co., Inc. is facing potential Nasdaq delisting due to delayed filings of its annual and quarterly reports. The company received notices from Nasdaq's Listing Qualifications Department citing non-compliance with Listing Rule 5250(c)(1), which requires timely submissions of periodic reports. The company has until mid-June 2024 to present plans to regain compliance, with potential extensions until mid-October 2024 if approved by Nasdaq.
In a strategic move, Hempacco and Illumination Brands have announced plans for a merger of U.S. operations. The proposed combination aims to form a vertically integrated beverage and snack brand incubator named Illumination Brands, projected to generate $35 million in revenues in its first year. The merger is expected to combine Hempacco's manufacturing and research and development expertise with Illumination Brands' extensive distribution network.
These are recent developments that could significantly impact the company's operations and its standing on the Nasdaq exchange. Analysts are closely monitoring the situation, particularly the potential delisting and the proposed merger. However, it's important to note that both the compliance plan and the merger are subject to approval and are not guaranteed.
InvestingPro Insights
In light of Hempacco Co, Inc.'s (NASDAQ: HPCO) recent strategic acquisitions aimed at broadening its vending machine operations, a deeper financial analysis reveals several critical factors investors may consider. According to real-time data from InvestingPro, Hempacco's market capitalization stands at a modest $3.14 million USD. The company's financial health is a concern, as indicated by a negative Price/Earnings (P/E) ratio of -0.56, which has slightly improved in the last twelve months as of Q3 2023 to -0.46. This negative P/E ratio suggests that the company has not been profitable over the last year.
The Price/Book (P/B) ratio, which can indicate how the market values the company's net assets, is notably low at 0.35. This metric could be of interest to value investors looking for potential undervalued opportunities. However, it's important to consider this in the context of Hempacco's broader financial situation and market performance. The company's revenue has seen a decline of 31.79% over the last twelve months as of Q3 2023, which may raise concerns about its growth trajectory.
InvestingPro Tips also highlight several challenges facing Hempacco, such as a significant debt burden and difficulties in generating positive cash flow. The company's short-term obligations exceed its liquid assets, and it has been quickly burning through cash. These factors contribute to a valuation that implies a poor free cash flow yield. Moreover, the stock price has performed poorly over various time frames, including a significant fall of 79.5% over the last year.
For investors interested in a more comprehensive analysis, there are additional InvestingPro Tips available, which shed light on the company's financial health and market performance. To access these insights and potentially uncover hidden investment opportunities, consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription at InvestingPro.
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