Hemp, Inc. Provides Updates on Benefits/Rules Regarding its Spin-offs
Hemp, Inc. (OTC: HEMP) has developed an extremely diversified business plan since its inception, and as the company has grown, it has reached the point where the Company needs to narrow its focus. Many of Hemp, Inc.'s divisions have developed extremely promising products that no longer match the direction of the Company. Rather than closing these divisions and miss opportunity, the management has decided to spin-off these companies, leaving its investors with question... particularly what it means to them and to Hemp, Inc.
To clarify, a spin-off can occur when a company takes one of its divisions and completely separates it from the parent company, allowing the new public company to grow on its own (separate from the parent company). It, however, is not simply a give-away. Since the parent company owns most or all of the stock in the spin-off, the shareholders of the parent company directly benefit because the stock in the spin-off, that is owned by the parent company, is reissued to the shareholders of record, of the parent company, in the same percentage that the shareholder owns in the parent company. For example, if a shareholder of Hemp, Inc. owns