Shares of Hempacco Co. Inc. (HPCO) increased 4.41% to $1.42 on Monday on the announcement of a joint venture (JV).
Whom did HPCO create the JV?
Hempacco (HPCO) and Sonora Paper Co., Inc. (“SPCI”) have formed a joint venture to produce, market, and sell hemp blunt wraps, hemp tubes, and hemp smoking cones using SPCI’s intellectual property.
Hempacco has submitted a certificate of modification to change the company’s name to Hempacco Paper Company, Inc. The Real Stuff, Inc. was a Delaware business that Hempacco had established in March 2021. Sonora Paper Co., Inc. has 20% of Hempacco Paper Co., Inc.’s stock holdings, while HPCO holds the remaining 80%. The smoking paper products will be created and produced in the USA and Mexico by Hempacco Paper Co., Inc.
Through this collaboration with Hempacco, Sonora will be able to more quickly spread the use of the tools and methods it has spent the last ten years creating. The majority of the physical labor used to produce goods like hemp tubes and wraps has been imported up to this point. By introducing new automated techniques to the production of hemp tubes and wraps right here in North America, Hempacco Paper Company is upending the status quo.
Shorter transit times are the result of a significant reduction in the distance between the plant and the client. Mechanization also makes it possible to produce more quickly and in greater quantities. Superior quality and consistency in comparison to handcrafted alternatives, as well as new choices like custom-shaped wraps or the inclusion of a printed brand, are further advantages of mechanical techniques.
The market for blunt wraps is currently undersupplied, and this new joint venture will assist HPCo in filling that void. Without ever touching the cannabis itself, HPCO will create unique blunts and cones, smoking goods made from hemp and rose petals, and other smoking accessories.
How would this aid HPCO’s future growth?
The management of Hempacco (HPCO) is expanding its footprints through new joint ventures, and they have this time partnered with Daniel Kempton of Sonora Paper Co. The smoking paper product market is being dominated by HPCO employing its patents and patent-pending technologies.