Yesterday, the Renewal Fuels Inc (OTCMKTS:RNWF) stock was in the middle of a strong selloff and ended the day with a sharp decline of as much as 20%.
Market Action:
On Thursday, RNWF stock slid 19.53% at $0.0052 with more than 30.18 million shares, compared to its average volume of 6.73 million shares. The stock has moved within a range of $0.0048 – 0.0064 after opening the trade at $0.0064.
Initiation of Florida Hemp Fiber Innovation Project
Although the fall was sharp, it is important for investors to keep in mind that yesterday the company made a key announcement with regards to its subsidiary company Sunshine Hemp Inc. Renewal announced that Sunshine Hemp had made an application to get a grant for its Florida Hemp Fiber Innovation Project. The project is a local industrial hemp plant that is seeking to ‘cottonize’ hemp so that it could be used in manufacturing textiles at a commercial level.
It was a significant announcement from the company and if the grant is awarded it could mark the beginning of a wholly new direction for Sunshine Hemp. It has also been projected that Sunshine Hemp is going to be able to generated revenues of as much as $60 million in the first two years during which it is going to start producing. The company is looking to launch a new industry in South Florida that is eventually going to have a significant impact on the entire hemp sector.
Key Quote:
“Sunshine Hemp is building a seed-to-sale infrastructure, satisfying the growing demand for sustainable materials and giving a much-needed push to Florida’s economy, workforce and farming industry,” stated Alka Badshah, CEO of Renewal Fuels. “The goal will be to jump start the development of a regional hemp fiber industry in North Florida using Florida State-approved hemp fiber seed genetics.”
Traders Note:
RNWF stock is trading below the 20-Day and 50-Day Moving averages of $0.0059 and $0.0055 respectively. Moreover, the stock is trading below 200-Day moving average of $0.0056. The stock is down 5% in the past 3-month.
