LiveWire CEO Shareholder Letter – Summary of Milestone Developments

Anaheim, CA (July 25, 2019) –LiveWire Ergogenics, Inc. (OTC: LVVV) a forward-thinking company focused on special purpose real estate acquisitions and the licensing and management of fully compliant turnkey facilities engaged in the production of cannabis-based products and services for the health and wellness industry, today released a letter to Shareholders.

Dear Fellow Shareholders and Potential Shareholders,

Our last Shareholder Letter on April 22, 2019 resulted in strong positive feedback from you, our loyal and valued shareholders. Accordingly, we will continue to use this effective communication tool to connect directly with you, our existing, and future shareholders. Your response to past shareholder letters has encouraged us to publish our CEO Shareholder Letters on a more frequent basis.

In our last letter we discussed 2018 being a crucial year for us, and indeed it has been; and 2019 is proving to be just as crucial. Since our last letter we have been busy accelerating the implementation and refinement of our plans to become the largest vertically integrated legal cannabis operations in California. Admittedly an ambitious goal, a goal that we have been working on intensely for the last year. Many of the plans that we had announced in earlier communications have now been implemented or are in the advanced stage of implementation. Based on the different stages and the overall progress of our projects, we are now expecting to begin increasing the modest revenue generated during Q2 2019 significantly during the second half of 2019 and improve further in 2020 and 2021. 

MILESTONES

Estrella Ranch Acquisition

Clearly the most important milestone in our company’s history and biggest advance towards our goal of becoming the largest vertically integrated cannabis operation in California was the acquisition of our 265-acre ranch in Paso Robles, Estrella Ranch, of which we coined the phrase, “Estate Grown Weedery”. This beautiful property, formerly owned by George R. Hearst, is located in the middle of the beautiful California wine country, surrounded by many world renown wineries and green all the way to the horizon.

We have worked on the acquisition of this property for nearly a year, conducting in-depth environmental and legal due diligence to assure the property’s suitability for our business purpose and to secure favorable financing. After securing the financing for the acquisition, over the past several months, we have begun to implement our plan to develop Estrella Ranch into one of the most exclusive, vertically integrated cannabis operations in California. To fully utilize the enormous potential that this large property represents for us, we will begin operation of our own projects, complimented by carefully vetted Third-Party Operators that we will enter into lease and innovative revenue sharing agreements. These operators will have to meet the high level of standard that LiveWire has established for itself and all operators that want to take advantage of a turnkey and fully legal cannabis production platform on this property.

By taking full advantage of the total 250-acre outdoor acreage and many well-suited residential and commercial buildings encompassing over 50,000 square feet of in-door production possibility, we will establish a truly unique property consisting of indoor and outdoor growth comprised of cultivation operations, and extraction facilities. All this will be complimented by the LiveWire 7X Pure testing and verification system. Because this is such an exceptional property, we intend to eventually supplement operations with educational workshops, entertainment events and luxury recreational opportunities, focused on providing a comprehensive and unique cannabis related retreat experiences and wellness facilities. We are committed to achieve all this while maintaining the beauty and serenity of one of the most gorgeous landscapes in California.

Hemp on the Estrella Weedery

San Luis Obispo County, the local government authority for Paso Robles, is currently going through the process to regulate the hemp industry in the county. Based on information gathered during the last city council meeting that we attended, the final decision may be made within the next several months. We have initiated talks with several hemp experts to be fully prepared to commence with operations as soon as the City Council’s final decision will be announced. Our experts understand the complexities of a dual-crop, and have assured us that the topography of Estrella Ranch is ideal for production.

The Estrella Nursery

Adjacent to our Estrella Weedery property, we have leased a 25,000 square foot building that will house our Estrella nursery and research operation. We have spent several months of intense legal and environmental research, to secure the property. We have worked our way through an intense approval process with the San Luis Obispo City Planning Commission and City Council, presenting our final application in a public city council meeting that ended with the approval of our operation permit. As a result, the Company has been granted a minor use permit for this 25,000 square feet indoor nursery. We have to make a couple changes to the build-out plans to maximize production capabilities and speed-up the production time-frame. This will expedite the start of production on the Ranch and all operations will meet the Company’s expectation for “Best-in-Class” operations. We will strictly comply with all Federal, State and local laws and rigorously maintain the natural beauty and openness of the Paso Robles property and its surroundings. We currently have several third-party operators competing for these buildings.

The nursery, adjacent to our Weedery, is centrally located between the cities of Los Angeles and San Francisco in Paso Robles, CA. The central building on the facility is designed to be a highly secured genetics vault and clone storage of carefully selected, “7X Pure” verified strains. The adjacent building will house “teens” and additional rooms for storage and supplies. The customization capabilities of the interior will allow us to house proprietary strains for local cultivators that we intend to team-up with, enabling them to have access to a constant supply of inventory. The State has issued over 1,000 cultivation licenses in the Central Coast, and these growers will require a reliable and premium supply source for high-quality genetics and pesticide-free cannabis strains to satisfy their increasing production capacities. LiveWire will be well positioned to meet these requirements.

Coachella Nursery

In January of 2019, our subsidiary GHC Ventures was granted a Cultivation/Nursery License from CalCannabis, a division of the California Department of Food and Agriculture to begin production in our high-tech POD facility in Coachella, California. CalCannabis Cultivation Licensing is a division of the California Department of Food and Agriculture (CDFA) and ensures public safety and environmental protection by licensing and regulating commercial cannabis cultivators in California. CalCannabis also manages the state’s track-and-trace system, which tracks all commercial cannabis and cannabis product; from cultivation to sale. We have already setup and are utilizing the track-and-trace system “LeafLogix” daily to report all transaction processed by our agents to strictly comply with the terms of our distribution agreement and all State laws.

This cultivation license positions LiveWire in a critical position for the legal cultivation of commercial cannabis goods in the State of California, further empowered by its statewide Cannabis Distribution License. Utilizing the distribution license efficiently, supported by the recent addition of an experienced expert team to manage the expansion of our State-wide distribution operation, has required us to increase production capacity at Coachella, while we are getting ready to begin production at our Paso Robles facility soon. This is another important step towards the realization of our goal to become the leading supplier of the highest quality products and services as a vertically integrated cannabises operations in California.

About the LiveWire Cloning PODS                                                                                             

Every component used in the LiveWire PODs has been designed by LiveWire’s expert cannabis and technical teams under the supervision of its Master Horticulturist, fulfilling all strict legal and environmental requirements. The PODs are state of the art and have been built by one of the most experienced manufacturers for self-contained agricultural production equipment in California. They provide a fully controlled and self-contained cultivation environment customized for the advanced and highly specialized LiveWire and “7X-PURE” certified cannabis cloning and production process, fulfilling the most stringent legal and environmental cannabis production standards in the industry.

Statewide Distribution License – GHC Ventures Distribution

We have been issued a Statewide Distribution License by the California Bureau of Cannabis Control. This distribution license, obtained via our subsidiary GHC Ventures, is another crucial step in the Company’s plans to establish one of the first vertically integrated and “closed-loop” cannabis companies in the State of California, covering all activities from seed to distribution. The distribution license solidly establishes LiveWire in a key industry position as a potential strategic partner for other legally compliant operators that would want to take advantage of LiveWire’s position as a statewide licensed Cannabis distributor, closing the existing gap between growers, wholesalers and retail operations. We now can distribute not only the LiveWire brands, but also a full spectrum of cannabis and CBD products from multiple manufacturers, cultivators and manufacturers. We are in the process of assembling all the vital steps to secure a solid chain of custody for all products in our distribution network and establish a direct route to market for a complete 7X Pure verified product line.”

The Company is in the advanced stages of the approval process for additional state-wide licenses and in other select California municipalities. This will also expedite the development of legally compliant LiveWire cannabis products that can be used as ingredients for a variety of different cannabis, hemp and CBD/THC infused products and support the Company’s plans to become a key supplier to diverse cannabis manufacturers. 

LiveWire Private Label “7X Pure” and Basso Botanicals

To further establish our market position in the California cannabis market, LiveWire has entered into a Distribution and Private Label Agreement with Basso Botanicals, a manufacturer of organically grown, full-plant, full-spectrum, active hemp oil extracts in a variety of products to help people and animals experience its various health benefits and promote a healthy lifestyle. Basso Botanicals will be the first manufacturer to implement LiveWire’s 7X Pure™ Dosing and Verification system to ensure consumers Basso products are of the highest quality.

We share a vision for the future with Basso, not only in product development and in the utilization of legal distribution channels, but also the importance of an extremely high set of standards. The 7X Pure ™ Dosage and Verification system fits this vision perfectly. Basso Botanicals is well-respected in the industry and its quest to develop only the highest quality pharmaceutical grade products for consumers. This mirrors LiveWire’s approach to a changing cannabis industry whose customers’ demand clean, high-quality and certified product.

Equine Research

The Company has established a dedicated and permitted CBD/cannabis research section on the newly acquired Estrella Ranch and Nursery property in Paso Robles, California to collaborate with and coordinate the company’s research teams in its different locations.

As its first critical project the Company has gathered a high-caliber research team with some of the leading experts in the US Performance Equestrian field. The team is comprised of a leading US veterinarian, an Internationally recognized Equestrian Olympian rider and coach and a team of accomplished and well-respected US riders and coaches. The team is currently training on an International level at Ad Astra Stables, one of the leading equestrian facilities in Encinitas, California. LiveWire’s research team also plans to engage with other medical industry experts and enter strategic alliances with medical research departments of California universities to expand research in this newly emerging industry sector

LiveWire Private Label “7X Pure” and Basso Botanicals

To further establish our market position in the California cannabis market, LiveWire has entered into a Distribution and Private Label Agreement with Basso Botanicals, a manufacturer of organically grown, full-plant, full-spectrum, active hemp oil extracts in a variety of products to help people and animals experience its various health benefits and promote a healthy lifestyle. Basso Botanicals will be the first manufacturer to implement LiveWire’s 7X Pure™ Dosing and Verification system to ensure consumers Basso products are of the highest quality.

We share a vision for the future with Basso, not only in product development and in the utilization of legal distribution channels, but also the importance of an extremely high set of standards. The 7X Pure ™ Dosage and Verification system fits this vision perfectly. Basso Botanicals is well-respected in the industry and its quest to develop only the highest quality pharmaceutical grade products for consumers. This mirrors LiveWire’s approach to a changing cannabis industry whose customers’ demand clean, high-quality and certified product.

Equine Research

The Company has established a dedicated and permitted CBD/cannabis research section on the newly acquired Estrella Ranch and Nursery property in Paso Robles, California to collaborate with and coordinate the company’s research teams in its different locations.

As its first critical project the Company has gathered a high-caliber research team with some of the leading experts in the US Performance Equestrian field. The team is comprised of a leading US veterinarian, an Internationally recognized Equestrian Olympian rider and coach and a team of accomplished and well-respected US riders and coaches. The team is currently training on an International level at Ad Astra Stables, one of the leading equestrian facilities in Encinitas, California. LiveWire’s research team also plans to engage with other medical industry experts and enter strategic alliances with medical research departments of California universities to expand research in this newly emerging industry sector

OTCQB Up-Listing

In January of 2019 we filed our quarterly report for Q3 2018 and additional OTCQB application documents for a final review by OTC Markets, as required before final approval of our up-listing application. After the review by OTC we were informed that certain disclosures formatting needed to be amended and re-posted. 

Due to timing deadlines for the filing of our Annual Report 2018, we had to decide on whether to continue making the requested changes to the quarterly report or prepare and file our audited annual report for 2018, since we fully expected that OTC would now request the most recent Annual Report to back up our application for up-listing to the OTCQB . We chose to focus on the auditing of the annual report and to post the unaudited financials while the audit is getting finalized. We’re confident that our reapplication combined with the audited Annual Report for 2018 will meet the requirements for OTCQB up-listing. The audit and disclosure process is an expensive and time consuming process, and we dedicate resources as much as possible to finish the process. 

Summary of our Achievements over the last 12 Months

 

  • Acquired $6 Million 265-acre Estrella Ranch property in Paso Robles, California
  • Received cultivation/nursery and distribution license for its nursery in Coachella, California
  • Received cultivation/nursery and distribution permit for its nursery in Paso Robles, California
  • Received CA State distribution license from the California Bureau of Cannabis Control
  • Began operation of statewide distribution division for distribution of cannabis products throughout California
  • Begun vetting process for agreements for select third-party operators on Estrella Ranch
  • In negotiation with San Luis Obispo City Council for Hemp production license at Estrella Ranch
  • Installed the first of several planned state-of-the-art self-contained production PODs at its California facility
  • Entered distribution agreements and “7X Pure” Private Label Agreement with botanical company
  • Engaged renown expert legal, environmental engineering and compliance teams
  • Engaged research teams with highly recognized athletes and published experts to commence with leading-edge research to explore the application of cannabinoid products for human and equine applications.
  • Planning expansion into the sports and cosmetics markets for CBD or THC infused products with well recognized sports icons.
  • In the planning stages for expanding the proprietary “7xPure Compliance & Dosage Verification System” Lab system.
  • Continuing to explore potential acquisition targets and strategic alliances
  • Complete financial transparency via financial audits and begun OTC up-listing to OTCQB process

Q2 2019 Expectations

While we have been focused so far on carefully setting up our model of a fully vertically integrated legal and vertically integrated cannabis operation that can set itself apart from the competition, so far, we have only produced limited revenue. We believe that this going to change moderately with this Q2 2019 financial report, and we have high expectations for the second half of 2019 and the full years of 2020 and 2021, once our complex setup process is in place. We look forward to taking advantage of a fully legal and vertically integrated operation on one of the most beautiful facilities in California with perfect climate for our business purpose and an advantageous profit sharing model for the befit of all participants.

Stay tuned.
Bill Hodson
Chairman and Chief Executive Officer

For more information about LiveWire Ergogenics, visit http://www.livewireergogenics.com. For non-material updates, follow LiveWire Ergogenics on Twitter @livewireLVVV. Download the Stockwatchindex Research Report at www.swiresearch.com/report-index. Visit the Ad Astra website at www.adastracollective.com

About LiveWire Ergogenics, Inc.

LiveWire Ergogenics, Inc. (LVVV) specializes in identifying and monetizing current and future trends in the human and veterinarian health and wellness industry. The Company is focused on acquiring, managing and licensing specialized “closed loop” turnkey cannabis real estate locations of fully compliant and permitted turnkey facilities to produce cannabis-based products and services in California and the state-wide distribution of these products. This includes verification of zero pesticide products for quality brands via its “7X Pure” Cannabis Verification System, and the development, licensing and distribution of legal, high-quality cannabinoid-based products and services. LiveWire Ergogenics does not sell or distribute products that are in violation of the Unites States Controlled Substance Act.

Forward-Looking Statements

Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements. Forward-looking statements may include, without limitation, financial projections, statements regarding the plans and objectives of management for current or future operations and the development, regulatory approvals and commercialization of the Company’s products, systems and services. Such forward-looking statements are not meant to predict or guarantee actual results and performance, specific events or circumstances, and actual events may differ materially. Factors that may cause actual results to differ materially from any projections may include, without limitation, delays in the development of its properties and products, the impact of significant new or changing government regulation in the industry, existing or increased competition, results of arbitration and litigation, stock volatility and illiquidity, and the Company’s inability to generate sufficient revenues and profits, or to obtain additional financing for the implementation of the Company’s business plans or strategies. The Company assumes no obligation to update any forward-looking statements to reflect any event or circumstance that may arise after the date of this release.

LIVEWIRE ERGOGENICS INC.
1600 North Kraemer Blvd.
Anaheim, CA 92806
www.livewireergogenics.com
info@livewireergogenics.com