LiveWire Ergogenics Issues Shareholder Letter and Provides Corporate Update for 2021

Anaheim, CA, Jan. 15, 2021 (GLOBE NEWSWIRE) — LiveWire Ergogenics Inc. (OTC: LVVV), a company focused on acquiring, managing, and licensing special purpose real estate properties conducive to produce high-quality, handcrafted and organically grown cannabis products for medical and recreational adult-use in California, today releases CEO Letter to Shareholders.

Fellow Shareholders,

We are ready to hit 2021 head-on with an ever-increasing focus on building an exceptional company. Most of the pieces for that are now in place, and our vision of building the world’s first Estate Grown Weedery on our unique ranch location for regenerative cannabis tractor-less farming for the cultivation of organic, medicinal, and recreational cannabis in California, are now in place.

Looking back at this past years’ experience and evaluating our progress to date, I can now write this letter with extreme optimism for the future of our company. It also is meant as a thank you to the passionate group of dedicated individuals focused on our success, and our shareholders that have stuck with us and supported us for the last few years.

Especially this last year has been a profound learning experience for our management, expert teams, and partners, creating a wealth of insights into the complicated processes of complying with complex laws and environmental rules and regulations on the local and State level. This, and the fact that regulators are growing more comfortable with a more transparent and maturing cannabis industry, has encouraged us to transition from our traditional health and wellness model of years past, to our current business model for regenerative cannabis tractor-less farming for the cultivation of organic, medicinal, and recreational cannabis in California. Strictly following our business model to grow only the best quality, handcrafted, and organically grown cannabis, we will be able to significantly improve the financial performance of the Company, and expect this to be reflected in a corresponding share price as we capitalize on the following key assets:

• Historic Real Estate Property – With rolling hills and gorgeous countryside in the heart of California’s Central Coast Wine Country
• Ideal micro-climate for the cultivation of the highest quality, Appellation of Origin verified, organic cannabis
• Necessary permits – Phase One for over 150,000sf of canopy has been granted by the County
  of San Luis Obispo California – State approval is pending as of this publish date
• Chief Cultivation Officer – 25-years’ experience in outdoor, organic, craft-grown cannabis
• Powerful Distributor – Well financed and influential distribution partner with broad entertainment and loyal social media following
• Scalable Property – Vast acreage allows us to expand to meet market demands and exceed
  $50 million in annual revenue at full capacity

Real Estate Acquisition

In 2019, we embarked on our most ambitious project to date and acquired Estrella Ranch headquarters in Paso Robles, California to construct and operate the world’s first Estate Grown Weedery and to centralize all LiveWire corporate and affiliate operations on this large historic property located in the heart of California’s world-renown Central Coast Wine Country.

The acquisition of Estrella Ranch headquarters in Paso Robles, was the most important milestone in our company’s history so far and biggest advance towards our goal of becoming the leading organic cannabis operation in California. LiveWire will begin the cultivation process immediately upon the imminent State approval to take full advantage of the vast outdoor acreage and many well-suited residential and commercial buildings, encompassing the initial Phase 1 of 150,000sf of canopy, multiple buildings, supported with ample power and sufficient water supply from multiple onsite wells. Our large facility acreage and the business model we have developed allows us to consistently scale our cultivation areas to full capacity as dictated by the increasing demand for our products and in accordance with each additional permit issued.

Permits and Licenses

During the last six months, we have accelerated the construction of all necessary infrastructure improvements to satisfy the legal and environmental requirements for the approval of our cannabis cultivation operations. While we have encountered an abundance of complex Local and State rules and regulations, we have been able to successfully comply with local ordinances and have received final approval for our land use permit from the County, with State application approval pending.

Cultivation

Since the acquisition of the ranch property over one year ago, we have established a valuable and long-term relationship with our main operator QDG Agriculture, to handle the required buildouts, infrastructure improvements and cultivation on the Ranch. We have passed the necessary tests for final permit approval and together with our operator and cultivation partner with successful operations in Humboldt, California, have taken all required steps to begin cultivation instantly, once the State License has been issued. On the production level, our cultivation partner has taken precautionary actions that will allow us to significantly shorten the timeline form the start of cultivation to first harvest.

Distribution

Our distribution partner is standing by to bring our product to market without delay and has committed to purchasing the entire first harvest. We understand the need for pull-through at the retail level with attractive packaging and strong branding along with broad presence on influential social media platforms and we have established entertainment relationships that are necessary for the success of a product deeply rooted in culture lifestyle.

Plan, Execution and Scalability

LiveWire has put in place a unique, highly flexible, and scalable business model driven by the passion, vision and extensive experience of our team members and partners. We are executing on a business plan with a laser sharp focus on this vision, while staying flexible enough to react quickly to a dynamically developing cannabis market. At Estrella Ranch, we have established an exceptional, environmentally, and legally compliant cannabis operation, surrounded by hundreds of world-renown California wineries and supported by the best possible micro-climate in California. Together with our operating partners, we will soon begin to cultivate exceptional organic product for distribution throughout California. Our business model is expected to produce significant return on investment for years to come, with 2021 expected to be the absolute breakout year for LiveWire. Our goal is to generate over $7.5 million in revenue upon completion of our first year of Phase One operation.

Business Model and Operating Partners

To minimize our working capital needs during the construction, pre-permit, and initial cultivation phase, we have entered a unique revenue sharing business model with our operator QDG Agricultural. In addition to its responsibility for the required infrastructure improvements, QDG will handle the cultivation of its proprietary and highly marketable cannabis strains as allowed per California Laws under this agreement with us.

LiveWire manages the real estate and intellectual properties and obtains and maintains (through its affiliate companies) all operating permits. Our vision of a high-quality cannabis operation, similar to the wineries surrounding the Estrella Weedery, is now coming to fruition. Our cannabis cultivation will follow in the footsteps of the traditional wine industry and will provide us with multiple revenue streams, according to our business plan. The cumulative effect of cultivation revenue, facility rental and licensing income will support building a strong business, create a solid financial basis and ultimately produce the corresponding share value and significant return on investment for our shareholders.

Financial Responsibility

As we said many times before, we run a tight ship. We believe that operating under a very strict financial regime, 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 a few carefully selected consultants, focused on the different sections of our business plan, taking advantage of their deep experience and diverse skill set. We outsource services when it makes business sense and enter strategic alliances whenever possible and beneficial. Revenue from operations will increase as we scale up cultivation acreage to full capacity in accordance with additional permits issued over time.

LiveWire is the exclusive management company for both Estrella Ranch Partners and Estrella River Farms. Accordingly, LiveWire overhead will be kept low, with the largest portion of operating expenses covered by the operators and on the affiliate level. This will allow the Company to generate significant revenue and net income on a sustainable basis, operating with low overhead and without the need for unreasonable amounts of additional investment. Based on current market conditions, and subject to the timely approval of our additional licenses, the Estrella Weedery is projected to generate revenue of over $50 Million a year once operating at full cultivation capacity with Local and State authorization.

Expanded Management and Board

In anticipation of a very busy 2021, we have filled the vacant position of President, VP of Central Coast Operations, and Compliance Manager. We have also added the position of internal investor relations and two outside directors to our existing Board of Directors for increased communication and transparency.

Financial Discipline – Reg A Offering Circular

To fund and accelerate the rapidly continuing development of the second and third phase of cultivation and associated operations at the Ranch, we have created a transparent and advantageous investment instrument of a REG-A Circular Offering. After a very detailed application process, this Offering has been qualified by the SEC and makes the investing process easily accessible for potential investors and current shareholders. Shares for investors in the Reg A will be issued under this Offering Circular, with investors benefitting from the strict rules and regulations of this instrument scrutinized by the SEC. Currently, the investment opportunity will be limited to the States that we have already filed for Blue Sky approval and will only be available for a limited time. We will publish the start date for the availability of this investment opportunity when ready.

Differentiation

LiveWire is in the advanced phase of the second stage of implementing its unique and tightly focused business plan to take advantage of the rapidly evolving cannabis landscape in the Country and throughout California. We have established a unique revenue sharing business model that is based on strong partnerships with credible and experienced operators for the cultivation and distribution of our exceptional high-quality organic products grown under ideal microclimate conditions. We own the real estate, licenses and intellectual properties and strictly follow legal, environmental, and quality requirements. We believe this to be a well-structured approach that will set us apart from the competition. LiveWire is run by experienced managers and cultivation experts, consultants, and development teams, and thrives to satisfy typical financial industry due diligence standards for public cannabis companies.

Final Word

We are of the strong belief that too many early-stage cannabis companies have been sidetracked by unrealistic expectations for size and growth, chasing the newest shiny object or latest trend. They received sizable amounts of investment and ended up spread too thin or not being able to meet investors’ possibly unrealistic expectations, often created by the media. They lost focus on their core business to cultivate products of exceptional quality under economically feasible conditions, and eventually were forced to restructure or terminate operations. We are of the strong believe that for companies to succeed they need to stay true to the course, need to be run by experienced management that knows how to apply the financial yards sticks that are typically applied to all public (or private) companies and can build a solid and sustainable business that allows for consistent growth and the generation of increasing revenues and profits for years to come.

Our most recent developments, property acquisition, revenue sharing agreements and permit approvals, are setting the stage for this long term and sustainable growth. We have taken advantage of the initial preparational period to accelerate our infrastructure improvements and began the expansion of the growing areas on the Estrella Weedery. We have expanded our management team to focus on operations and compliance. In addition to our longtime market awareness partner Stockwatchindex, we have engaged a National marketing firm and a crowd funding platform specialist firm, that will present the LiveWire story to an even wider audience and will bring the Reg A offering online to provide easy and transparent access for all potential individual investors.

We understand that ultimately only increasing revenue and profitability will generate value for our shareholders. Assuming that the scaling of our cultivation operation succeeds as planned, we feel confident to project revenue increase to over $50 million on an annual basis, as permits and licenses are granted, and the consumer demand continues.

While not all the company’s strategic moves are complete, LiveWire is now well positioned in an industry sector with high barriers of entry; legally and operationally, The Company has developed a branded strategy for the cultivation and marketing of handcrafted organic products in compliance with all existing local and State laws, rules, and regulations under a unique revenue-sharing model. We will continue to pursue the acquisition of new properties and licenses, setting ourselves apart from the competition, a model that can be easily repeated by us for additional properties and should be attractive to investors in the “new” cannabis industry.

With the demand for pure, organically grown, craft cannabis products increasing rapidly, we expect the high-quality products that we are growing on our California Ranch to become the most sought-after premium cannabis in the industry during 2021. We are well on our way to developing our Paso Robles Weedery into a special place for regenerative cannabis tractor-less farming, operated by independent growers and passionate and experienced experts, carefully tending to each plant grown under the natural canopy of a perfect micro-climate amid California wine country.

We will continue to carefully analyze and monitor the general market conditions and dynamically make any necessary adjustment to avoid the pitfalls of the industry during the recent years, often with companies disregarding the objective to operate economically and creating overblown expectations at the same time. We are trying to keep expectations real and operations lean for maximum performance of the Company to reflect in our share price.

Thank you for your loyalty, and if you are new to us, we look forward to welcoming you as a new shareholder. We will do our utmost best to producing the results that you all expect from us during 2021.

Best Regards,

Bill Hodson
Chairman and CEO

About Livewire Ergogenics Inc. Livewire Ergogenics, Inc. (LVVV) specializes in identifying and monetizing current and future trends in the health and wellness industry. The Company owns, manages, and licenses specialized cannabis real estate properties conducive to producing high-quality handcrafted cannabis products for medicinal and adult-use in the US. This includes the distribution of these products and the creation of a Nationally recognized organic “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.

Attachment

• Estrella Ranch