Hempstract, Inc. (HPST)
For informational purposes only. Not financial advice. Analysis by Sedat Aydin, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Hempstract, Inc. (HPST). Hempstract, Inc. specializes in the production and sale of cannabidiol (CBD) and cannabigerol (CBG) solutions within the United States. Market cap: 0, Sector: Healthcare.
Last analyzed: Mar 18, 2026Hempstract, Inc. (HPST) Healthcare & Pipeline Overview
Hempstract, Inc. is a US-based producer of cannabidiol (CBD) and cannabigerol (CBG) solutions, offering CBD isolate powder and distillate oil. Operating in the specialty and generic drug manufacturing sector, the company focuses on catering to the evolving market for cannabinoid-based products, while facing competition and regulatory challenges.
Investment Thesis
Hempstract, Inc. presents a high-risk, high-reward investment opportunity within the burgeoning CBD and CBG market. The company's small market capitalization of $0.03 billion reflects its early stage of development and limited operational scale. Key value drivers include the increasing consumer demand for cannabinoid-based products and the potential for expansion into new therapeutic applications. However, the company's negative P/E ratio of -91.53 and a negative profit margin of -226.2% indicate significant financial challenges and the need for substantial revenue growth to achieve profitability. A gross margin of 78.8% suggests potential for profitability if sales volume increases. Upcoming catalysts include potential regulatory changes that could expand the market for CBD and CBG products. Potential risks include intense competition from established players, regulatory uncertainty, and the company's ability to secure funding for growth. The company's high beta of 1.79 indicates high volatility, making it suitable only for investors with a high-risk tolerance.
Based on FMP financials and quantitative analysis
Key Highlights
- Market Cap of $0.03B reflects its small size and early stage of development.
- P/E Ratio of -91.53 indicates the company is currently unprofitable.
- Profit Margin of -226.2% highlights the significant financial challenges and the need for improved efficiency.
- Gross Margin of 78.8% suggests potential for profitability if sales volume increases.
- Beta of 1.79 indicates high volatility, making it a high-risk investment.
Competitors & Peers
Strengths
- Focus on CBD and CBG solutions.
- Offers CBD isolate powder and distillate oil.
- Operates in the growing cannabinoid market.
- High gross margin of 78.8%.
Weaknesses
- Small market capitalization of $0.03B.
- Negative P/E ratio of -91.53.
- Negative profit margin of -226.2%.
- Small number of employees (2).
Catalysts
- Upcoming: Potential regulatory changes that could expand the market for CBD and CBG products.
- Ongoing: Increasing consumer demand for cannabinoid-based products.
- Ongoing: Potential for expansion into new therapeutic applications.
- Ongoing: Development of new product formulations.
- Ongoing: Strategic partnerships and acquisitions.
Risks
- Ongoing: Intense competition from established players.
- Ongoing: Regulatory uncertainty in the CBD and CBG market.
- Potential: Potential changes in consumer preferences.
- Ongoing: Difficulty in securing funding for growth.
- Potential: Limited financial disclosure increases the risk of investing in HPST.
Growth Opportunities
- Expansion into New Therapeutic Areas: Hempstract can explore opportunities to develop and market CBD and CBG-based products for specific therapeutic applications, such as pain management, anxiety relief, and sleep disorders. The market for cannabinoid-based therapeutics is projected to grow significantly as more clinical research validates their efficacy. Hempstract can partner with research institutions to conduct clinical trials and develop proprietary formulations targeting specific medical conditions. This expansion could significantly increase revenue and establish Hempstract as a leader in the cannabinoid-based therapeutics market, estimated to reach $50 billion by 2030.
- Geographic Expansion: Hempstract can expand its sales and distribution network beyond its current base in the United States. The global market for CBD and CBG products is growing rapidly, with significant opportunities in Europe, Asia, and Latin America. Hempstract can establish partnerships with international distributors or set up its own sales offices in key markets. This geographic expansion could significantly increase revenue and diversify the company's customer base. The global CBD market is projected to reach $20 billion by 2028, offering substantial growth potential for Hempstract.
- Development of New Product Formulations: Hempstract can invest in research and development to create new and innovative CBD and CBG product formulations. This could include developing new delivery methods, such as transdermal patches or inhalers, or combining CBD and CBG with other active ingredients to enhance their therapeutic effects. New product formulations can attract new customers and increase sales among existing customers. The market for innovative CBD and CBG products is growing rapidly, driven by consumer demand for more effective and convenient delivery methods. This could involve an investment of $1-2 million over the next 2 years.
- Strategic Partnerships and Acquisitions: Hempstract can pursue strategic partnerships and acquisitions to expand its product portfolio, distribution network, and market reach. This could include partnering with other CBD and CBG companies, pharmaceutical companies, or wellness product retailers. Strategic partnerships and acquisitions can accelerate growth and create synergies that enhance the company's competitive advantage. This strategy could involve acquiring smaller competitors or partnering with larger companies to gain access to new markets and technologies. The timeline for such partnerships or acquisitions could be within the next 1-3 years.
- Focus on Quality and Compliance: Hempstract can differentiate itself from competitors by focusing on producing high-quality CBD and CBG products that meet stringent regulatory requirements. This includes implementing robust quality control measures, obtaining certifications from reputable organizations, and complying with all applicable laws and regulations. A focus on quality and compliance can build trust with customers and enhance the company's reputation. This is an ongoing effort that requires continuous investment in quality control and regulatory compliance. This could involve an investment of $500,000 annually.
Opportunities
- Expansion into new therapeutic areas.
- Geographic expansion into international markets.
- Development of new product formulations.
- Strategic partnerships and acquisitions.
Threats
- Intense competition from established players.
- Regulatory uncertainty in the CBD and CBG market.
- Potential changes in consumer preferences.
- Difficulty in securing funding for growth.
Competitive Advantages
- Proprietary formulations (if any).
- Brand recognition (if any).
- Strategic partnerships (if any).
- Focus on high-quality products.
About HPST
Hempstract, Inc., formerly known as Riverdale Oil and Gas Corporation, transitioned to the production and sale of cannabidiol (CBD) and cannabigerol (CBG) solutions in November 2020. This strategic shift reflects the company's adaptation to emerging market opportunities within the healthcare sector, specifically targeting the growing demand for cannabinoid-based products. Based in Warden, Washington, Hempstract focuses on producing CBD isolate powder and distillate oil. The company's product line is geared towards consumers and businesses seeking cannabinoid ingredients for various applications, including wellness products and therapeutic formulations. Hempstract operates within the Drug Manufacturers - Specialty & Generic industry, navigating the regulatory landscape and competitive dynamics of the CBD and CBG market. The company's small size, with only two employees, indicates a lean operation, potentially relying on outsourcing or strategic partnerships for various aspects of its business, from manufacturing to distribution. As a relatively new entrant in the CBD and CBG market under the Hempstract name, the company is focused on establishing its brand presence and building customer relationships. The company's success hinges on its ability to efficiently produce high-quality CBD and CBG products, comply with regulatory requirements, and effectively market its offerings to a target audience in a competitive environment.
What They Do
- Produces cannabidiol (CBD) solutions.
- Produces cannabigerol (CBG) solutions.
- Offers CBD isolate powder.
- Offers CBD distillate oil.
- Sells CBD and CBG products in the United States.
- Focuses on cannabinoid-based products for wellness and therapeutic applications.
Business Model
- Produces CBD and CBG products.
- Sells products directly to consumers or businesses.
- Generates revenue through product sales.
- Focuses on high-quality cannabinoid ingredients.
Industry Context
Hempstract, Inc. operates within the rapidly evolving CBD and CBG market, a segment of the broader Drug Manufacturers - Specialty & Generic industry. The market is characterized by increasing consumer demand for cannabinoid-based products, driven by perceived wellness benefits and expanding therapeutic applications. However, the industry faces regulatory uncertainty and intense competition from both established pharmaceutical companies and numerous smaller players. The market size is projected to reach billions of dollars in the coming years, presenting significant growth opportunities for companies that can navigate the regulatory landscape and establish a strong brand presence. Hempstract's success depends on its ability to differentiate itself through product quality, innovation, and effective marketing strategies.
Key Customers
- Consumers seeking CBD and CBG products for wellness.
- Businesses using CBD and CBG as ingredients in their products.
- Manufacturers of wellness products.
- Companies developing therapeutic formulations.
Financials
Chart & Info
Hempstract, Inc. (HPST) stock price: Price data unavailable
Latest News
No recent news available for HPST.
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for HPST.
Price Targets
Wall Street price target analysis for HPST.
MoonshotScore
What does this score mean?
The MoonshotScore rates HPST's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Leadership: Ronald M. Herzfeld
CEO
Ronald M. Herzfeld serves as the CEO of Hempstract, Inc. His background and experience prior to joining Hempstract are not detailed in the provided data. As CEO, he is responsible for overseeing the company's strategic direction, operations, and financial performance. Given the company's small size, Herzfeld likely plays a hands-on role in various aspects of the business, from product development to sales and marketing. His leadership is crucial for navigating the challenges and opportunities in the rapidly evolving CBD and CBG market.
Track Record: Due to limited information, Ronald M. Herzfeld's track record at Hempstract, Inc. cannot be fully assessed. However, since taking the helm, he has overseen the company's focus on CBD and CBG solutions. His leadership will be critical in driving revenue growth, achieving profitability, and establishing a sustainable competitive advantage in the cannabinoid market. The company's future success hinges on his ability to execute the company's strategic plan and adapt to changing market conditions.
HPST OTC Market Information
The OTC Other tier represents the lowest tier of the OTC market, indicating that Hempstract, Inc. may not meet the minimum financial standards or disclosure requirements for higher tiers like OTCQB or OTCQX. Companies in this tier often have limited trading volume and may be subject to less regulatory oversight compared to companies listed on major exchanges like the NYSE or NASDAQ. Investing in companies on the OTC Other tier carries higher risks due to the potential for limited information, price volatility, and liquidity challenges. This tier is often populated by shell companies, bankrupt entities, or companies with questionable business practices.
- OTC Tier: OTC Other
- Disclosure Status: Unknown
- Limited financial disclosure increases the risk of investing in HPST.
- Low liquidity can make it difficult to buy or sell shares.
- The OTC Other tier carries higher risks due to less regulatory oversight.
- Potential for price volatility due to limited trading volume.
- The company's small size and limited resources increase operational risks.
- Verify the company's financial statements and SEC filings (if any).
- Research the background and experience of the company's management team.
- Assess the company's business model and competitive landscape.
- Evaluate the company's compliance with regulatory requirements.
- Determine the company's cash flow and financial stability.
- Understand the risks associated with investing in OTC stocks.
- Consult with a financial advisor before making any investment decisions.
- Company is registered in Warden, Washington.
- Company has a specific business focus (CBD and CBG solutions).
- Company has a history of operating under a different name (Riverdale Oil and Gas Corporation).
What Investors Ask About Hempstract, Inc. (HPST)
What does Hempstract, Inc. do?
Hempstract, Inc. is a US-based company that produces and sells cannabidiol (CBD) and cannabigerol (CBG) solutions. The company offers CBD isolate powder and distillate oil, catering to the growing demand for cannabinoid-based products in the wellness and therapeutic markets. Hempstract operates within the Drug Manufacturers - Specialty & Generic industry, focusing on providing high-quality cannabinoid ingredients to consumers and businesses. The company's small size and focus on CBD and CBG solutions position it as a niche player in the competitive cannabinoid market.
What do analysts say about HPST stock?
AI analysis is currently pending for HPST stock, and there is no available analyst consensus. Given the company's small market capitalization of $0.03 billion and its listing on the OTC Other tier, it is unlikely that major brokerage firms provide research coverage. Key valuation metrics, such as the negative P/E ratio of -91.53 and the negative profit margin of -226.2%, suggest that the company is currently unprofitable. Investors should carefully consider the company's financial challenges and growth prospects before making any investment decisions. Further research and due diligence are recommended.
What are the main risks for HPST?
Hempstract, Inc. faces several significant risks, including intense competition from established players in the CBD and CBG market, regulatory uncertainty surrounding cannabinoid-based products, and the company's limited financial resources. The company's small size and negative profitability make it vulnerable to market fluctuations and competitive pressures. Additionally, the company's listing on the OTC Other tier carries higher risks due to less regulatory oversight and limited liquidity. Investors should carefully assess these risks before considering an investment in HPST.
What are the key growth opportunities for HPST in healthcare?
Hempstract, Inc. can explore opportunities to expand its product line into new therapeutic areas, such as pain management, anxiety relief, and sleep disorders. The company can also pursue strategic partnerships with healthcare providers and wellness product retailers to expand its distribution network. Additionally, Hempstract can invest in research and development to create new and innovative CBD and CBG product formulations targeting specific medical conditions. These growth opportunities can help Hempstract establish a stronger presence in the healthcare sector and increase its revenue and profitability.
What revenue streams does Hempstract, Inc. have in healthcare?
Hempstract, Inc.'s primary revenue streams are generated from the sale of CBD isolate powder and distillate oil. These products are sold to consumers and businesses for use in various wellness products and therapeutic formulations. The company's revenue is dependent on the demand for CBD and CBG products, as well as its ability to effectively market and distribute its offerings. The company's small size suggests that it may rely on a limited number of customers or distribution channels. Diversifying its revenue streams and expanding its customer base could help Hempstract reduce its reliance on specific products or markets.
What are the key factors to evaluate for HPST?
Evaluating HPST involves reviewing fundamentals, analyst consensus, and risk factors. Key strength: Focus on CBD and CBG solutions.. Primary risk to monitor: Ongoing: Intense competition from established players.. This is not financial advice.
How frequently does HPST data refresh on this page?
HPST prices update in real time during U.S. market hours (9:30 AM-4:00 PM ET, weekdays). Fundamentals refresh after quarterly or annual filings. Analyst ratings and AI insights update daily. News is aggregated continuously from financial sources.
What has driven HPST's recent stock price performance?
Recent price movement in Hempstract, Inc. (HPST) can be influenced by earnings results, analyst revisions, sector rotation, and broader market sentiment. Notable catalyst: Focus on CBD and CBG solutions.. Check the News and Technical Analysis tabs for the latest drivers. Past performance does not predict future results.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Limited information available on Hempstract, Inc. due to its OTC listing and small size.
- AI analysis pending for HPST stock.