Strictly following these principles, we have acquired (through our subsidiary Estrella Ranch Partners, LLC) the LiveWire “Estate Grown Weedery” in Paso Robles in the middle of the most beautiful wine country in California. We are in the advanced stage of establishing Estrella Ranch as our main hub to run all LiveWire operations from. This represents the most significant milestone on our path to a fully vertically integrated operation.
The Estrella Ranch location provides us with the ultimate micro-climate for operating a “tractor-less” operation, producing the highest quality organic and hand-crafted outdoor product in the country all year round under economically advantageous conditions.
Real Estate Ownership is Crucial
We consider “owning the real estate” and going through the elaborate process of acquiring all required permits for the operation of our Weedery, a crucial part of establishing a profitable and sustainable cannabis business that can produce significant return of investment in a competitive environment for years to come. Our business application allowing the production of cannabis products on the Ranch has been submitted to the same authority we have already received our Minor Use Permit for our nursery location adjacent to the Ranch from. We expect to receive the final permit soon. Further discussions for supplemental business projects on the Ranch are already in discussion with the relevant local and State authorities.
Strategic Alliance with QDG Agricultural
Sate of the Art Cultivation with Proven Results
QDG is an agriculturally based company that specializes in state-of-the-art cannabis cultivation practices backed by academia and proven results and with a long track record of success. QDG uses a propriety premium soil blend that is 100% organic living soil. This blend uses 60% less water. 50% less fertilizer and ZERO (0) toxic pesticides, creating an ultra-efficient regenerative plant environment in strict compliance with the rules that LiveWire has established for all operators on the Ranch. QDG uses state of the art technology and science executed by a team of professionals with 20 years of experience. The QDG system is proven to be cost effective and easily scalable, representing 100% organic "tractor-less farming”. QDG is comprised of a and highly experienced group of experts and represents the ideal partner to get our Estrella Weedery operation off the ground successfully.
With the demand for pure, organically grown and thoroughly tested cannabis products growing rapidly, we anticipate the handcrafted product that will be grown at our California Ranch to become the most sought-after premium cannabis in the industry. With the ODG partnership our vision of an “Estate Grown Weedery” producing the finest handcrafted and family branded cannabis in California is beginning to clearly emerge. Based on current market conditions, considering approval of licenses and a successful “proof of concept” during phase 1, this property could generate over $25 million a year with revenues to increase once operating at full cultivation capacity
Financial Responsibility
We believe that operating under a very strict financial regime, by tightly controlling operating expenses
and maintaining a low debt burden, is critical for a public company in the cannabis sector to succeed. Accordingly, we operate with a small management team and several consultants focused on the different sections of our business plan, outsource services whenever it makes business sense and enter strategic alliances whenever possible and beneficial.
Our Weedery is a large, 256-acre property that provides us with the unique opportunity to implement our business model with different, carefully vetted high-quality producers that generate revenue and share operating expenses. At the same time, we maintain ownership of the property and all licenses. We believe this to be a prudent approach that will allow us to implement our ambitious plan without requiring large amounts of investment that would create unreasonable shareholder dilution. We are positioning LiveWire to reap maximum benefits from the slowly emerging turnaround of the industry in general.
In the Company’s only current litigation, American E Group LLC v. Livewire, the United States District Court for the Southern District of New York issued an order that granted Livewire Ergogenics Inc’s (“Livewire”) motion to dismiss all of Plaintiff American E Group’s (“AEG”) claims against Livewire. The Court also denied AEG any attempt to reassert its claims because any attempt to do so would be “futile.” The Court held that AEG’s loan to Livewire was criminally usurious, and therefore, void under New York law. Livewire’s counterclaims against AEG for aiding and abetting breach of fiduciary duty, breach of implied covenant of good faith and fair dealing and civil conspiracy are still pending.
Livewire is represented in this lawsuit by Ryan J. Whalen of Gusrae Kaplan Nusbaum PLLC in New York.
Here is what we focused on in 2019
1.
Acquired 265-acre Estrella Ranch “Weedery” property in Paso Robles, California
2.
Received cultivation/nursery and statewide distribution license for nursery in Coachella, California
3.
Received local jurisdiction approval for a nursery in Paso Robles, California
4.
Received Annual CA State distribution license from the California Bureau of Cannabis Control
5.
Began operation of distribution division for the distribution of cannabis products throughout
California
6.
Completed research reports and submitted application for Estrella Ranch Permit (Weedery)
7.
Began negotiations for agreements with select third-party operators on Estrella Ranch
8.
Engaged research teams with highly recognized athletes and published experts to commence with
research to explore the application of cannabinoid products for human and equine applications.
9.
Explored potential acquisition targets and strategic alliances
10.
Entered into first definite Agreement for lead operator on Estrella Ranch
11.
Reported positive Net Income for the 6 months ending September 2019
12.
Prepared financial statements for audits and began OTCQB up-listing process
Outlook to 202
0
1.
Entered into definitive agreement with experienced grower QDG Agricultural to design,
construct and manage Phase-1 of a self-sustained scalable grow facility at Estrella Ranch
2.
Continue implementation of vertically integrated company business model
3.
Continue to integrate auxiliary LiveWire operations on Estrella Ranch as the Central Operation
Hub for all operations and subsidiaries
4.
Establish Estrella Ranch “Estate Grown Weedery” as the leading “hand-crafted” Nationwide
family cannabis brand.
5.
Receive approval of submitted application for Estrella Ranch operational permit.
6.
Expand distribution network throughout California
7.
Expand the proprietary “7X Pure Compliance & Dosage Verification System” testing system, add
QR Code implementation
8.
Publish 2019 Annual Report
9.
Expand LiveWire research projects
10.
Finalize OTCQB Up-listing Application
11.
Acquisition of synergistic companies (consideration)
Final Word
To put it mildly, we have learned a lot during this last year, and based on this experience are continuing to dynamically adjust our business model to this turbulent industry with rules and regulations still changing frequently and being adjusted to realist economic conditions. We have and are continuing to carefully analyze the market conditions and make the necessary adjustment to avoid the mistakes that have been made by some of the larger companies that bulldozed into this this potentially huge market, not operating economically and creating maybe overblown performance expectations. We are trying to keep expectations real and operations lean for maximum performance.
With the demand for pure, organically grown, legal and thoroughly tested cannabis products growing rapidly, we expect the high-quality, handcrafted product that we will be growing at our California Ranch to become the most sought-after premium cannabis in the industry during 2020. In the true spirit of ‘Doing-it-Right’ we are developing our Paso Robles Weedery into a special place operated with unique “tractor-less” farming methods by independent growers and passionate and experienced experts, carefully tending to each plant grown under the natural canopy of a perfect micro-climate in the midst of California wine country.
This beautiful facility brings our vision of an “Estate Grown Weedery” producing the finest family of hand-crafted branded cannabis products in the Country via a tightly implemented quality control process under our vertically integrated business model closer to reality. We are planning to expand the craft-grow business model by consequently choosing the most experienced partners and respecting and fully utilizing the ideal conditions at our beautiful estate, two factors that are unparalleled in the industry, for maximum results.
Thank you for your loyalty.
We are looking forward to producing the results that you all expect from us during 2020.
Bill Hodson
Chairman and CEO
LiveWire Ergogenics
About LiveWire
The LiveWire Ergogenics, Inc. (LVVV) business model is built on the principle of acquiring special purpose real estate properties conducive to discovering and developing cannabinoid products for the health and wellness industry to improve life performance. 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, the development, licensing and distribution of legal and high-quality cannabinoid-based products and services and the creation of the high-quality "Estrella Weedery" brand. LiveWire Ergogenics does not produce, sell or distribute products that are in violation of the United States Controlled Substance Act. For more information, please visit:
LiveWireErgogenics.com
.
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 future performance of the company. 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 review carefully 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.