Anaheim, CA, Feb. 02, 2022 (GLOBE NEWSWIRE) — LiveWire


Ergogenics Inc. (OTC: LVVV)


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a company focused on acquiring, managing, and licensing special purpose real estate properties and operations conducive to producing high-quality, handcrafted, and organically grown cannabis products for medical and recreational adult-use in California; today released the following Letter to Shareholders from its Chief Executive Officer.

Dear Fellow Shareholders,

While 2021 presented difficult market conditions for most companies in the cannabis industry, we continued to make progress on our vision to create the world’s first Estate Grown Weedery located on Estrella Ranch and explore additional opportunities that complement our business model. Our strategic focus and goals for 2022 include:

• Suspend the Reg A Offering at the current level to ease share price pressure
• Complete cultivation area to three acres on Estrella Ranch
• Estrella River Farms to implement “grow by the pound and sell by the gram” strategy
• Maximize leasing, licensing, and consulting fees
• Surpass $1 million in Net Income
  

We believe our company will be successful by focusing on goals within our grasp and providing an opportunity for our affiliates and subsidiaries to maximize their potential.

The challenging market conditions during the last year caused by an oversupply of products and declining prices put a damper on the performance of many companies in the sector. Still, we have weathered the storm quite well. We are ready to close out 2021 and hit 2022 head-on with high expectations for the years ahead. While we will continue to exert our influence and establish constructive government relationships to improve some complex and burdensome conditions in the industry in general, we have an ever-increasing optimism, elevated level of energy, and a clear focus on expanding our exceptional business model together with our affiliates and subsidiaries. As it was our plan from the beginning, LiveWire’s goal is to own, lease and manage real estate in California that qualifies for State-licensed cannabis operations and build a high-value portfolio of affiliate and subsidiary companies.

We launched the first phase of this plan by commencing with operations on Estrella Ranch, operated by our affiliate company Estrella River Farms (“ERF”). We have been developing this large property and preparing it for operations for the last two years. Our vision of creating the world’s first Estate Grown Weedery

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at Estrella Ranch and utilizing regenerative tractor-less farming and enabling ERF to cultivate the highest quality sun-grown organic style cannabis as the first entry into the industry has become a reality. We are pleased with the first harvests delivered for processing and distribution.

Our first goal for 2022 is to expand the cultivation area on Estrella Ranch by two additional acres, which is currently in the advanced stage. This will increase the canopy area to over 130,000sf of cultivation for Estrella River Farms. Most of the additional acreage is already reserved for cooperation with several widely popular third-party cannabis brands under private labels.

We are proud to deliver on the promises we have made and believe that we are now in a solid position to accelerate all ongoing developments leading us into the future. We will continue to build this exceptional Company we always had in mind while carefully maneuvering the current market uncertainties

We continue to focus on our holding company business model, beginning with our large and ambitious Estate Grown Weedery

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project. This requires extensive legal and environmental expertise, patience, and substantial working capital. We have partnered with one of the most experienced and passionate cannabis cultivators in the country retained an expert legal team and local county consultants to help navigate the development process. We cautiously selected our investment partners to secure the working capital needed.

As a first-round, we have utilized the well-established financing instrument of a Reg A Offering Circular to raise the required working capital and avoid creating excessive dilution to existing shareholders. This Instrument requires SEC registration and is intensely scrutinized and qualified by the SEC. Our first Reg A transaction quickly reached our funding goal while avoiding a negative impact on our share price. By structuring it carefully, we were able to increase the strike price for the second and third tranche and closed out the transaction earlier than expected. This allowed us to reduce the number of shares issued under the Offering. The successful conclusion of this transaction also allowed us to finance our start-up activities without entering substantial amounts of debt.

Accordingly, we felt encouraged to enter our second Offering with a maximum of 125,000,000 shares of the common capital stock of the Company. This second investment opportunity will be strictly limited to the funds required to accelerate the development of Estrella Ranch. According to our holding company business model, partial funds may be used for additional acquisitions and will only be utilized if needed. Only a small portion of the Offering has been issued at the time of this letter.

True to our business philosophy as a holding company and owner of cannabis real estate and operational permits through our subsidiaries and affiliates, we continue to run a lean operation with a small management team and select industry experts. Our business model makes us less vulnerable to the fluctuations of the price of cannabis. With the first season at Estrella Ranch now executed and delivered, I feel confident about the Company’s improving financial performance over the next two years.

We are confident that the general market conditions in the industry will improve based on advancing legalization and the easing of restrictive conditions. We feel our share price will soon reflect these conditions. The advantage of our unique business model, performance on the ground, solid revenue generation, and capacity to create a substantial ROI for our investors moving forward into 2022 and the years ahead will create a solid opportunity for investors.

Past


24 Months


Milestones

1. Acquisition of Estrella Ranch
2. Grant of Land Use Permit by the County of San Luis Obispo
3. Grant of State cannabis cultivation license from CalCannabis
4. Entered into Agreement with QDG Agricultural
5. Built out of initial first-acre cultivation area completed
6. Begin Cultivation Process
7. Deliver the first Harvest
8. Acquired majority position in Estrella Ranch Partners, LLC
9. Acquired equity position in Makana Ola Farms
10. Launched the San Luis Obispo Cannabis Growers Alliance
    
11. Appointed Brand Manager for Consumer-Packaged Goods
    

Our vision of a high-quality cannabis operation is now coming to fruition. Our cannabis management and cultivation program is similar to the traditional wine industry business model and will provide multiple revenue streams. The cumulative effect of equity positions, facility leasing, licensing, and management income will support building a solid and reliable financial basis and ultimately produce the corresponding share value and significant return on investment for our shareholders.

THE


OUTLOOK

1. Second Reg A Offering (SEC certified)
2. Amendment of Reg A Offering
3. Expand cultivation area to three acres
4. Begin second cultivation season
5. Apply for the expansion of cultivation area for 2023, which includes 22,000sf of indoor cultivation
6. Grant of State licenses for two additional acres
7. Acquire additional properties that qualify for our business model
8. Launch house brands with distribution to hundreds of dispensaries
9. Joint venture with manufacturers and distributors
10. Embark on an aggressive marketing campaign

In late 2021, LiveWire acquired a majority equity position in Estrella Ranch Partners, LLC, and is the exclusive management and consulting Company for both Estrella Ranch Partners and Estrella River Farms. LiveWire’s overhead will be kept low under its holding company structure, with the most significant operating expenses covered by the operators and affiliates. This structure will allow the Company to generate significant revenue with very low cost of goods, low G&A expenses, and substantial net income on a sustainable basis once all operations are up and running. Revenue generation will be stable and less susceptible to potentially radical price fluctuations of cannabis. The Company will continue to operate with low overhead and without the need for excessive additional investment beyond its current Offering, except for expanding the Estrella cultivation areas to total capacity and acquiring suitable new projects.

Final Word

We believe that for cannabis companies to succeed, they need to stay true to the course and be run by experienced management with the patience, stamina, and persistence to maneuver all obstacles in the cannabis industry successfully. To stay ahead of changing market conditions, management must constantly analyze the market, competition, and other crucial industry conditions for consideration in its business decisions. With our Company structure, we have implemented a unique business model that sets us apart from the competition. We believe that we have the patience, stamina, and foresight to successfully maneuver the current downturn in California’s cannabis prices based on oversupply and the over-taxing of legal operations. LiveWire management applies the same financial yardsticks typically applied to all public (or private) companies to build a solid and sustainable business that allows for consistent growth and the generation of increasing, predictable, and sustainable revenues and profits for years to come. Based on the intense experience of the last two years, we believe that we have structured our Company accordingly.

With the demand for pure, organically grown craft cannabis products increasing rapidly, we expect the high-quality products cultivated on our California Ranch to become the most sought-after premium outdoor cannabis on the market during 2022. We are well on our way to developing our Paso Robles Weedery into a special place for regenerative cannabis tractor-less farming, operated by experienced growers and passionate and skilled experts, carefully tending to each plant grown under the natural canopy of a perfect micro-climate amid California wine country. We believe that Estrella Ranch will eventually become the ultimate destination for all people passionate about our industry and engaged in the cannabis culture.

We will continue to carefully analyze and monitor the general market conditions and potential acquisition opportunities and make any necessary adjustments moving forward to avoid the industry’s pitfalls during recent years, often with companies disregarding the objective to operate economically and creating overblown expectations at the same time. We try to keep expectations realistic, and operations lean for maximum company performance to be reflected in our share price. We understand that only increasing revenue and profitability will generate solid value for our shareholders. By continuing to pursue our business plan, we feel confident that we will generate stable and predictable revenue in the years ahead.

Lastly, we would like to welcome our new and thank our current shareholders that helped our base grow rapidly to over 6,200. Our entire team appreciates your loyalty. We will be relentless in our pursuit to produce the results you expect during 2022 and beyond.

Best Regards,

Bill Hodson

Chairman and CEO

About LiveWire Ergogenics Inc.

The Company focuses on acquiring, managing, and licensing well-qualified cannabis real estate locations to establish fully compliant and permitted facilities to produce cannabis-based products and establish services for the state-wide distribution of these products in California. This includes developing and licensing cannabis products and services and creating the world’s first Estate Grown Weedery

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brand. LiveWire Ergogenics does not produce, sell, or distribute products that violate the United States Controlled Substances Act. For more information about LiveWire Ergogenics, visit

www.livewireergogenics.com

. For non-material updates, follow LiveWire Ergogenics on Twitter @livewireLVVV, or go to

www.stockwatchindex.com/livewire-ergogenics

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Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or the Company’s future performance. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In evaluating such statements, prospective investors should carefully review various risks and uncertainties identified in this release, the Company’s Social Media postings, and matters set in the Company’s SEC filings. These risks and uncertainties could cause the Company’s actual results to differ materially from those indicated in the forward-looking statements.