Launches New Product Line for the Nationwide Hemp Retail Market

A Year-End Review and Outlook from the CEO

Anaheim, CA, February 5, 2025 – LiveWire Ergogenics Inc. (OTC: LVVV), a pioneering force in the development and marketing of high-quality, handcrafted cannabis and hemp-derived products, today publishes its CEO’s year-end review 2024 and outlook for the upcoming year 2025. It outlines the Company’s continuing strategic shift towards a modified business model responding to the changing market conditions, customer demands, and political climate.

The company has begun aggressively expanding the market reach for its products nationwide while adjusting its business model and product roster to reduce or eliminate high cultivation and related operating expenses. This move is a testament to the Company’s unwavering commitment to offering only the highest-quality and best-priced cannabis and hemp-derived products for distribution throughout California and the Nation as state and federal law allows. Livewire’s dedication to quality and improved economic operations ensures it is well-positioned for renewed and continued success in the fast-evolving cannabis/hemp industry.

Mr. Hodson states, “As the turbulent developments over the last two years have demonstrated, the cannabis industry has radically changed since its beginning days and continues to do so at a rapid pace. Falling bulk flower prices, increasing operating costs, complex and costly legal and environmental compliance, and the significant negative impact from unreasonably high taxes and still thriving illicit sales have created conditions that make it difficult for many companies, especially mid-to-large-size cultivators, to generate a balanced revenue flow and operate profitably. Nevertheless, we believe the industry is now entering its “adult” phase and still has an enormous growing potential if you are agile enough to adjust your thinking and market approach.”

Mr. Hodson continues, “Since entering the cannabis industry almost a decade ago, we have closely monitored these ever-changing conditions and consistently evaluated and adjusted our business model accordingly. Consequently, deteriorating conditions and the demise of many cannabis companies around us, big and small, have led us to review all options to reduce the single most significant fixed cost expenditure, the high operating cost of the large cultivation operations on Estrella Ranch in Paso Robles, California. We have decided to move away from only cultivating low-margin wholesale bulk flower, burdened by high production costs, to more unique, high-quality, and higher-margin cannabis, hemp-derived THC, and pure hemp wellness products. The first market entry is our SOL Vida THC and Hemp-derived product line. Through our distribution and wholesale partners, we will sell these products in California and all domestic retail markets where hemp-derived products are allowed. Hemp-derived THC has been a major factor in the decline of the regulated cannabis market pricing, so the company’s new products for National distribution come with the ‘can’t beat ‘em, join ‘em’ attitude.

Nationwide Distribution

In addition to our Sol Vida THC products limited to sales in California, with our SOL VIDA hemp-derived product line ready for sale, we can now tap into established distribution for the wholesale and retail markets nationwide. We are cutting the dependency on wildly fluctuating market prices (typically with downward price pressure) for bulk flower, which generates unreliable revenue patterns limited by annual harvest cycles. Our focus has shifted to developing and marketing high-quality specialty THC products that we sell in California and a new line of hemp-derived Sol Vida Products that we can sell to select states Nationwide.

Improve Return on Investment

Over the last year, we have set up relationships that allow us to source our basic materials at a lower cost than if we produced them ourselves. This will allow for a more constant and predictable production volume of our specialty products and significantly reduce general operating costs throughout our fiscal year. We expect this to improve our financial performance significantly. We believe that an elevated level of flexibility, without the burden of high fixed costs, is crucial to generating and maintaining reasonable revenues and profit margins. Our current move demonstrates our business model’s scalability, profitability, and long-term viability, generating an ROI that investors have a right to expect.

Over the past five years, Livewire and its affiliate Estrella River Farms have been subject to intense and costly scrutiny by the County, the State of California, and the California Environmental Agency. They have passed all frequent inspections and have become the poster child for cannabis compliance. This track record of compliance is a testament to the Company’s commitment to operational excellence and regulatory compliance, providing stakeholders with confidence in our future.

Despite these achievements, Estrella River Farms has yet to achieve the financial success we aimed for. Falling wholesale flower prices, based on overproduction and the continuing price pressure by still thriving illegal sales, over-taxation of legal operations, high county, local, and State fees combined with unreasonable accounting limitations, and no access to banking have made it nearly impossible to produce consistently satisfactory financial results for our operations. We do not expect any relief or improvements for cultivators in the short or mid-term, even with the ever-illusively looming Federal Legalization.

Specialty Retail Products crossing the State Lines

Accordingly, we are phasing out our business model of managing and funding the expensive Estrella Ranch operation. Instead of solely cultivating and selling bulk flower for wholesale distribution, we use our intense real-life experience to develop a more profitable specialty THC and Hemp-derived retail product line. We are not satisfied with simply wanting to survive difficult market conditions; we want to thrive. We believe embarking on this more sophisticated and fact-based business model will achieve just that: thrive. While we aggressively pursue establishing a larger footprint and expect increasing sales for our THC products in California, the new model will also allow us to sell a selection of our hemp-derived products across state lines, generating significantly higher profit margins and drastically increasing revenues and net income.

Reducing Operating Expenses – Eliminating Fixed Cost

As part of the Company’s review process to reduce operating expenses, we have assisted Estrella Ranch Partners in negotiating to extend and change the mortgage agreement for Estrella Ranch that ended on August 30, 2024, to more economical terms or, if unsuccessful, selling the facility. So far, the parties have not been able to come to a new agreement, and the company has put up the Ranch for sale, along with a possible lease-back. We are in the process of negotiating favorable terms for the company that will allow us to still utilize the Ranch when advantageous without carrying the high, fixed burden operating cost of the ranch operation. While this process continues, we cannot give any assurances at this time for the anticipated outcome. We have intensified the analysis of our operating structure for the Ranch in connection with the general market conditions, which resulted in our decision to modify our vertically integrated operating model.

The Signs were Clear

We are not mindlessly rushing into this revised business model; we have seen the signs for a long time and have been preparing for this change over the past two years. We have made this decision based on our intense six-year cultivation operating experience and cost analysis supported by in-depth research on the turbulent state of the cannabis industry in general. It seems clear to us that large cultivation operations cannot survive by cultivating and selling bulk flower only. On the other hand, a vertically integrated operating model from cultivation to the dispensary, owning and managing every segment of this chain, requires deep management experience in every sector and carries a substantial risk of individual subsidiary or affiliate failures, which are common these days. Our revised business model gives us the flexibility to thrive in a very dynamically changing market.

As the cannabis market matures, consumers are seeking a wider variety of products beyond traditional flowers, edibles, concentrates, topicals, vapes, and beverages that have been gaining popularity. Accordingly, during the last year, we have developed and will begin distributing an entire line of unique and high-margin specialty THC and hemp-derived CBD/THC products, advancing our entry into a more profitable consumer packaged goods, retail, and direct-to-consumer industry sector.

Moving forward, we will work with significantly lower operating expenses and more evenly balanced cash flow over the entire year, not just during two short harvest periods. Through our relationships with licensed distributors and manufacturers in California, we can purchase high-quality source materials for our SOL VIDA Wellness product line at lower prices from a selection of top producers with whom we have established relationships rather than cultivating and processing it ourselves. Following this model will considerably increase our revenue and profit margins.

The SOL VIDA Wellness Product Line

Over the last year, we have developed a complete line of stand-out products, our “SOL VIDA” branded products, focusing on delivering higher-margin retail products to our distribution partners. The consumer demand for unique, easy-to-use, high-quality cannabis products has increased drastically.

A Clear View of the Future

Our SOL VIDA Wellness Cannabis products will be available in the California-regulated market through most major distributors, wholesales, dispensaries, and delivery services, with the SOL VIDA Hemp-Derived elixir distributed to select states Nationwide. We have begun developing these higher-margin retail products with a clear view of the future of the cannabis business and taking advantage of the revitalization of the “Hemp-Derived” market in the US. This move is also in response to the increasing demand based on more sophisticated consumer behavior for high quality, ease of use, and effectiveness. Our wellness products meet this demand and will create immunity to severe price fluctuations in the cannabis market at harvest time.

Furthermore, to clear this path leading to a reliable and productive future, we are working on improving our balance sheet by renegotiating existing debt and improving our authorized and outstanding share structure for the benefit of our shareholders. We will provide you with the details when we have concluded the various stages of these efforts.

DISTRIBUTORS AND DISPENSARIES

FOR SALES AND DISTRIBUTION INQUIRIES OF ESTRELLA RIVER FARMS PRODUCTS

PLEASE EMAIL INFO@LIVEWIREERGOGENICS.COM

For more information about LiveWire Ergogenics, visit www.livewireergogenics.com.
Follow LiveWire Ergogenics on Twitter @livewireLVVV
Or go to www.stockwatchindex.com for non-material updates.

About LiveWire Ergogenics Inc.
LiveWire is a pioneering force in the development and marketing of unique, high-quality, handcrafted cannabis-based and hemp-derived products for medical and recreational use for distribution in California and throughout the US. This includes developing and licensing cannabinoid-based specialty products and services such as the high-quality “SOL VIDA Wellness” and “Estrella Weedery^™ brands, developed and sold by Livewire’s affiliate Estrella River Farms and distributed through established cannabis distributors, dispensary chains, and direct-to-consumer delivery services in California and throughout the US, depending on product configuration (THC or Hemp). 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. To purchase our products, go to Estrella River Farms. Follow LiveWire Ergogenics on Twitter @livewireLVVV or go to www.stockwatchindex.com/livewire-ergogenics for non-material updates. 

Forward-Looking Statements
This release contains forward-looking statements within Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. All forward-looking statements, predictions, and projections are inherently uncertain as they are based on current expectations and assumptions of the successful execution of planned events or the Company’s general future performance. Readers are cautioned not to rely on these forward-looking statements, which are predictions and speak only as of the date. 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 results to differ materially from those indicated in the forward-looking statements.

Livewire Ergogenics, Inc.
info@livewireergogenics.com

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ir@livewireergogenics.com
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