Livewire Ergogenics Provides Update on Estrella River Farms in Paso Robles and Makana Ola Farms in Humboldt, California
Press release from LiveWire Ergogenics:
Anaheim, CA, June 06, 2022 (GLOBE NEWSWIRE) — LiveWire Ergogenics Inc. (OTC: LVVV), a company focused on acquiring, managing, and licensing special purpose real estate properties conducive to producing high-quality, handcrafted, and organically sun-grown cannabis products for medical and recreational adult-use in California, today provides an update on its Estate Grown Weedery project on Estrella Ranch in Paso Robles and Makana Ola Farms in Humboldt, California.
Estrella River Farms is now entering the third year of careful planning and focused development, along with intense environmental and State inspections. This effort has yielded the premier model for the legal and environmentally responsible cultivation of organic-style, sun-grown high-quality cannabis products in California.
The Current Snapshot
- Biomass from the 2021 harvest has been converted to distillate and will be offered in one-gram cartridges throughout California starting this month via our co-branding arrangement with Phire Labs
- Acre One on Estrella Ranch has been populated with double the amounts of plants than last year and are tracking well
- The bulk of Acre One will feature the best performing strains conducive to the micro-climate we experienced during last year’s harvest and many other exotic strains requested by distributors.
- The hoop houses have been modified to provide increased output
- Acres Two and Three are awaiting approval from the Department of Cannabis Control
- The clones for additional acreage are growing well at the nursery and standing by for delivery
- Makana Ola Farms in Humboldt is a 10,000-sf cultivation site, and plants are in the ground and off to an excellent start for the season
Bill Hodson, CEO of LiveWire, comments, “The industry-wide drop in flower pricing last year in California made us explore alternative outlets for the harvest from Estrella River Farms. We took advantage of the opportunity to maximize yield by partnering with the premier manufacturer in Southern California to manufacture and distribute co-branded products into existing distribution channels. This relationship will provide brand recognition for Estrella River Farms and introduce our exceptional product directly to consumers. The biomass from Estrella River Farms supplied to Phire Labs produced considerably higher than average THC content, purity, and visual appeal, higher than the top-shelf product supplied by indoor cultivators. Our first harvest has proven that the team at Estrella River Farms produces an outstanding product.”
“The 2022 harvest will feature two additional acres of cultivation, and the expansion will quadruple the output from last year. We are anxiously awaiting approval from the State for the additional, ready-to-plant two acres on Estrella Ranch. California permitting procedures only allow single, one-acre licenses per property, but applicants can apply for multiple 10,000sf licenses to cultivate larger footprints. This regulation was implemented to protect small farms from large corporations entering the State and dominating the cultivation landscape. But the ability to ‘stack’ licenses allow farms to increase their cultivation area if their land use permit from their respective counties allows the additional canopy, as the permit for Estrella Ranch does. Applying for multiple 10,000sf licenses entails redundant work, time-consuming, and more expensive than simply applying for a single acre grow, but these are the rules we must live by.”
Mr. Hodson continues, “Estrella River Farms applied for nine 10,000sf cultivation licenses the last week of 2021. It has been over five months in the review process at the Department of Cannabis Control. The team has responded immediately to any questions or clarifications asked by the reviewer at the State. All nine licenses are reviewed individually, and although the administrative portion of the application is basically ‘cut and paste,’ the scientific review for the canopy areas is again reviewed down to the smallest detail. It is a complex and time-consuming process. Still, the team has diligently responded to all questions and complied with all rules and regulations. We now expect approval of the entire batch of nine new licenses any day. Estrella River Farms will have a complete three-acre harvest in 2022.”
Progress Report
Since we began this journey to build the ultimate California cannabis facility, the industry has drastically changed, impacting especially smaller companies. Caused by an oversupply of cannabis combined with the volume of the still-thriving illicit supply chain, flower prices have dropped significantly. This has caught many smaller farms by surprise, and the stock prices for publicly traded companies have dropped significantly, hitting the larger SPACS especially hard.
LiveWire and its subsidiary companies have prepared for this scenario over the last two years. They have established a unique business model focused on exceptional quality, not quantity, and on creating a unique consumer experience. We believe that only well-managed companies with a unique business model, exceptional product quality, low overhead, minimal investment, and debt load will be able to survive and eventually, once the market conditions improve, shine brightly. We believe that during the last three years, we have gathered the necessary experience and taken the proper steps to be one of these companies.
About Estrella Ranch Estate Grown Weedery™
Estrella Ranch is a historic property in Paso Robles, the center of the world-renowned California wine country. Through its affiliate Estrella Ranch Partners, LLC., the Company has begun transforming this stunning property into the world’s first “Estate Grown Weedery,” developing it into a facility to cultivate high-end organic cannabis products. Estrella Ranch has a long-standing history, was once owned by the Hearst family, and is considered among the finest Ranches in California and the gem of the California Central Coast. Estrella Ranch is located near Paso Robles and Santa Barbara, halfway between Los Angeles and San Francisco, and is surrounded by hundreds of world-renown wine yards. The Estrella Ranch location is the central hub for all Livewire operations. Don’t hesitate to contact Investor Relations if you want to schedule a tour.
About Makana Ola
The Makana Ola Farms is a 40-acre parcel with a 9,900 sqft cultivation area located in the heart of Humboldt County in Northern California with sufficient water and electricity facilities. Processing, including drying and curing, occurs within a 560-square-foot structure, with further trimming and packaging executed offsite at a licensed processing facility. Makana Ola is a guarded secret of proper marijuana horticulture quietly grown amongst the giant redwoods. Cannabis has been an integral part of the Humboldt culture for decades. Growing organic cannabis for a living is a local tradition practiced and handed down from generation to generation, with a clear focus on reducing environmental impact and generating the smallest carbon footprint possible.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 relationships for the state-wide distribution of these products in California. This includes developing and licensing high-quality organic cannabinoid-based products and services and creating the “Estrella Grown Weedery™” brand via its affiliate companies Estrella Ranch Partners and Estrella River Farms. 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.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 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. 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.
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When did Paso Robles become “the center of the world-renowned California wine country”?
After Sideways came out on DVD.
How is it organic when it has that disposable plastic trellis netting? Isn’t that technically against ordinance?
This video is definitely First Season Enthusiasm!
Lots of plastic used in organic agriculture. It’s definitely one of the biggest issues in organic ag
I worked for an old hippie out in the Cove for many years. He would always say, “I got news for ya bro… if it comes in a plastic bag, it ain’t organic!”
Nothing wrong with that as a personal philosophy, but it’s not the reality of labeling regulations
Pounds in Siskiyou County for 150 and still not selling.
The next two years are gonna be tougher than most expect.
Fresh deps or last years?
What is this crap, this reads like an advertisement or a report they would give to investors. Have fun “expanding” i hope this group goes bankrupt and looses it all.
My 11 year old makes and edits better videos on her IPad. What’s up with those goofy plants? Odd spacing, skinny, not topped, and they look like they are already 1/2-1/3 of the height of the hoop. Each plant will have 1 big cola with a smooshed top from hitting the tarp. Nice mudslide he’s got going there and no mulch, looks like top of the line trucked in soils for that fancy organic farm. Good luck guys, I have a bridge for sale you could buy and put in to walk over the runoff and mud between your hoops. Haha
Wow a new weed farm!? Maybe they should start an Instagram acct! Nobody will believe this…
What? Are you buying wholesale pounds? Ok if not then fuck off.
“Estate Grown Weedery” (rolls eyes).
“LiveWire Ergogenics does not produce, sell, or distribute products that violate the United States Controlled Substances Act”…we just buy farms that do.
Is it too late to invest! Just kidding… How is it possible to pay everyone and still make a profit? CEO, CFO, marketing people, farmers, trimmers, and investors? If I were trimming for these people, I would insist on getting paid daily. That press release alone probably cost them $10,000!
50,000 sqft = 5000-10000lbs = 750k-1.5mil (at 150/lb)
Listen. If you can’t figure out how to get your complete cost of goods below $100 a unit and not grow your business with a 33% gross margin and secure your supply chain… You have no business doing business. This is why the Chad’s are eating your lunch. And taking handsome executive salaries in the process. Welcome to the real world.
Is that why big weed company stocks are in the toilet?
You’d have to be more specific.
WEED.TO: High: $67.67 Today: $5.13
CGC: High: $50.52 Today: $3.96
TLRY: High: $143.62 Today: $3.66
CRON: High: $21.64 Today: $2.87
ACB: High: $114.56 Today: $1.54
TGODF: High: $5.56 Today: $0.07
TGODF: High: $6.48 Today: $0.27
On average that’s more than a 95% reduction from peak. That’s a freakin’ deep toilet.
That last one was intended to be CANN (and I caught it too late to edit the post).
lol, love it. End of this year they all gotta buy businesses or pay back the Trenche. Should get interesting since that pipeline of money got cut off in March.
Savage
I can only hope John Boehner lost his ass.
You can hope in one hand and shit in the other and see which one gets filled first.
Shit in my own hand? I think I will pass. You can tell me what it’s like.
Hahaha! Yes.
You seem like a bright guy. You understand how markets and emerging industry works. Let’s check back in on this 5 years from now.
The corporate shill is here trolling
I hope you are able to corner the market on below cost weed.
10000 square feet with three pulls is about 1500 bows. At 300 is $450,000. Trimming costs 80-100 a pound, so getting cost per pound under $100 is pretty hard, unless you machine trim it, but people straight up aren’t buying those. Those are the $150 pounds still sitting around. So with trimming you are down to $200 a bow. Cost of fertilizer 20-40 bucks, so 180 a bow. You need 2 workers for that 10,000 at least paid at 30,000 a piece. So 60,000/1500=40 per bow, and those are poorly paid workers, so $140 a bow. $20,000 in square footage tax, so $125 a bow. Now don’t forget your cost of infrastructure, electric or diesel bill if you are on or off grid, and state excise tax, easily adding another $30 bucks per bow, so $95 a bow. 1500×95=$142,500. Gotta pay your state and federal income tax on that, no write offs, that’ll be $35,000 about, so $107,500. Not a bad living, gonna need $60,000 to live off of, so you will have $40,000 to grow you business with. Not bad, better hit everything perfect and make sure you get that $300 a bow. And it has to all sell fast.
You’re getting there. But remember, your infrastructure costs aren’t related to your direct cost of goods annually. Your pricing examples are being bought at a consumer level at scale currently. Machine trimmed weed comparable to Humboldt product, grown in a greenhouse in Central California with much more efficient and affordable ag labor costs and reoccurring energy costs. Matter of fact, the value market is the largest market in volume. $.80 – $.90 a gram wholesale to the retailer in a consumer ready good. Retailers can make 150-250% and the customer still gets a great value. Your example is exactly why the Chad’s are eating your lunch. If they’re turning a 20-30% gross margin, their stakeholders are extremely happy. Now, if your model is still selling bulk product to the traditional market and expecting to make a 1000% return, those days are long gone. People should not of hedged their futures on expecting that to last forever. People should adapt to the market and not assume the opposite.
//”People should adapt to the market and not assume the opposite.”//
Change is hard. Humans are adept at mistaking hope for strategy and waiting too long to adapt.
JB
Humans are great at trudging through hard times. Only a few adapt and then a few might follow suit.
“That’s why Chads’s are eating your lunch”
that should get the vote for stupidest comment of the year
Chads are getting chewed out in board rooms right now for losing their investors money.
All these chads thought federal legalization was around the corner. It’s not they are all going bankrupt.
I have heard of so many large companies on the brink of bankruptcy. If anything they are eating some ?
If anyone doubts the above statement by Ha ha, check out my list of the biggest cannabis stocks a few comments above — off by an average of more than 95% from peak.
Listen, I hear what you are saying, and it’s great that you are able to wrap it all up in a nice word salad, but you are leaving out the most important aspect of the whole thing:
20-30% gross margin on how large of an investment or input? That’s the main factor in your entire problem that determines if the output is viable, and also the part that you conveniently leave out. 30% on $1000 is only $300, not really anything to live off of. On $100,000 you aren’t making ends meet. So if you are talking on a million then yeah, that works. Gotta have that million first. And, as JayBeigh pointed out, it appears that the people who have invested millions aren’t getting those returns.
Explain to me whose lunch the Chads are eating? I can skip all the permits and knock 60k a year out of two grow tents and 6 plants. Skill and knowledge to make a plant perform to the fullest potential of its genetic capabilities is the main determination of success, mostly because the main ingredient is love, which costs nothing. The highest quality for a very good price always wins.
“knock 60k a year out of two grow tents and 6 plants.”
I’m sensing a fib.
I can break it down for you but yes you are right, I did round up. If you don’t grow more than you can trim yourself and you do everything by yourself from seed/clone to harvest and trimming then your cost of production is very very low. Also a strain that is 8 weeks and one that is 7 1/2 help to get that 6th run in a year. Timing everything right and trimming it all yourself makes it all work out.
500 lbs per 10k run three times a season is unrealistic for most. (Snowed on your first run, collapsed the Greenhouse, second run, ok 500 lb., 3rd run, maturing late November, moldy, airy, and your cheap labor quit.)You don’t just get there without paying for serious infrastructure. If you pay those two only 30k, there’s a good chance one of those runs will walk away without you.
Yes you are absolutely correct. I stated in my breakdown that that was if everything went perfect. I also stated those two workers were underpaid. Now 500 pounds out of 10k is totally doable, and more than that can be done. At a minimum you should pull 400 at a time out of there, if you aren’t hitting that, save yourself a headache and sell the farm.
This is a good example situation. Even if the numbers are off by 50%, there is clearly no room to satisfy investors or pay a corporate boardroom. 10,000 ft.² times five is still not much. Keep in mind, this is with everything going wonderfully for three pulls…
and that other guy was right too, chads are eating my lunch but my lunch is peanut butter and jelly. Chads are hurting as badly or worse than anyone right now. If you know one, please reach out.
Yeah what I posted is a small operation. There is only enough to pay workers minimum and the owner well. There is little money left over to grow the business and absolutely 0 money left to satisfy any sort of investor or anybody other than the 3 people directly involved growing the weed. Sword fest said “I’m getting there,” but the point is there is no money for an investor in a 10k square foot farm. And my math was done on poorly paid workers and dang good yields as well as prices that have been at the top end of what I have been hearing. It’s enough for 2 people to work and get by and the owner to support their family. That’s it. You can make a lot more money actually with a smaller operation because operation costs are lower and price per unit will be less, but you won’t be able to compete in volume which is where this is all headed.
At just under 10k SQ ft, I pretty much need $625 a pound to make a single $70k income, and pay enough to trim saleable weed. Of course buyers want $300 lbs or cheaper. I want $3.00 gas too. Soggy salty bale’s of untrimmed Panamanian material was $300 a lb., Back when fuel was $1.25, and beer was 50 cents!
Are you smashing out three runs in a year and pulling 1200?
That’s not possible to have a cogs under $100 a unit trimmed.
But you can keep telling your Dad that so he keeps lending you cash.
100% correct on the //taking handsome executive salaries//. They are the only ones mak’in money. Rumor in the Hillz is they are gonna go after Paul Newman’s tomatoes and take down his pasta sauce empire.
sounds like Chad’s in the house
So you took a business class? Teach me how to get a “AAA” trim, AND grow the pound cheaper than it costs to trim a pound. You said “secure your supply chain” are you a BUYER? Are you saying you want to secure your cost of goods at less than $100? Uh…try Paso Robles. GTFO.
https://www.sec.gov/Archives/edgar/data/1421289/000149315220009382/ex16-4.htm
LiveWire Ergogenics CEO Issues Letter to Shareholders (globenewswire.com)
Comically insane!
The only real question is… will Bill Hodgson be using the MedMen model of losing money or Canopy’s?
Omg! That link was too much! It took me down a little rabbit hole…They are promising shareholders that they hope to reach 1 million in sales this year. To do that they will employ the ole’ “grow by the pound, sell by the gram”strategy. They are a “regenerative cannabis tractor-free” farm. And of course it will all be paid for by selling 125,000,000 new shares of stock. 125,000,000 x .0077 (today’s share price)= $962,5000….Market cap $11.3 million, Down from something like 40 million at one point last year! 1.5 billion shares in circulation. It looks like one year, they sold almost $68,000 of product but their total operating expenses were over $700,000. It says total revenue, about $68,000… Cost of revenue $145,000. I’m not sure what that means but it doesn’t look good.
How is biomass feedstock for distillate manufacturing called a craft weedery?
Muddy soil, spindly plants, terrible spacing… Good luck with that.
At first, I thought that river of mud was some type of natural disaster. Then later they show you, no, it’s not a natural disaster… It’s somebody watering with a hose on full flow!
How nice! This is “legalization” and this is what you all wanted. Enjoy being “safe” and “free”. Also broke, destitute and in desperate poverty. The tweaker thieves are circling your house and whatever you have left and this party is way over. Super awesome, right?
Haha! Thanks for the laugh.
Consultants like you must keep the hope spinning. That’s how you keep your hand in other people’s pockets…talk them into trying harder and hoping for the best. Keep spinning dreams and watching them crash, parasite!
There are consultants out there who have taken up the good fight of turning small farms profitable and enabling them to compete against the big guys. There is absolutely nothing parasitic about showing somebody a few tricks to cut costs and yield more of a higher quality product in order to preserve that person’s dream of being able to grow craft reefer.
You sound a little sour, maybe I could be of some assistance?
“go buy 120,000 lil jars, and a labeling machine!….ok, now go lease and license your processing facility. See. You’re welcome. Make a donation to RHBB, in lieu of payment.
Well you keep guessing wrong about who/what I do. Is that because I don’t agree with what you say?
I support cannabis because, if done right, it can be a source of industry for our rural communities. It’s not a huge money maker when done right, but it’s a way of life for many good people. I’m not a cannabis consultant. I just learned about these things to help the people around me. So no I don’t have a farm to sell nor am I looking to take money from anyone.
Your terrible attitude and bitterness can be projected on to others, and maybe it temporarily makes you feel better, but it’s a lie for all to see.
I thought you made that video as a parody!
No words
I’m sorry, but why do we care? This is rubbing salt in the wounds of the OG, kicking ma and pa when they are down. When 20 gallons of gas costs you $150 and your primary streams of income within this once lucrative and thriving industry are gone, that’s just fucked up to publish mindless drivel like this. No. One. Cares.
Kym, why did you publish this? Is it intended to be consumed as satire?
I’m sure the investors are stoked to hear that;
“The hoop houses have been modified to provide increased output”
Modifying your hoop houses to provide increased output is the way I operate my world class estate weedery as well. Only the best hoop houses, properly modified, can grow this fine fine biomass fit for distillate production to be packaged under some massive brand and sold at economy pricing across the state.
The cannabis industry sucks these days
I published it because it is of interest to my readers.
Do you have a policy of publishing any press release from any emerald triangle adjacent cannabis business?
Pretty much any press release from any Emerald Triangle business (cannabis or not) within reason. (Mainly don’t do it too often and don’t be too obviously a sales pitch listing prices, etc.)
But in this case, I think this is a fascinating capture of an aspect of the cannabis history in Humboldt County. To be clear, this was not sent to me. I sought it out. And I’m fairly sure that the author of the press release is not intending it for a Humboldt County audience.
I think a number of folks find it interesting for various reasons. Per Nooo’s and other’s instructions that media shouldn’t be digging into the fray in the comment section, I’ll just leave you to guess what tickled my fancy and led me to think that it would be of interest to my readers.
Well I think you’re right that it’s not intended for local audiences, pretty clearly written for investors.
And based on the comment activity I’d say you’re correct that it’s of interest to your audience.
I’m gonna guess that you know the people at makana Ola or that they are in your neighborhood, and that’s why you sought it out. Either way, if you care about their project you might want to give them some pointers. Their promo video won’t inspire confidence in any informed investors
I do not know them to the best of my knowledge and they are clear across the county from me. Nor do I know anyone that has told me they know them.
You’re off base comments betray a bias. It’s good to see how these people are publicly operating. May just give the small operators some info on the competition.
What do you think is off base about my comments? If that promo video is a true representation of their production methods than they are not operating efficiently at all.
Maybe it was for visual effect, but anyone operating a commercial facility that doesn’t have irrigation installed is out to lunch and is also failing to take the most basic step to conserve water and promote soil health and plant health. Drip line and mulch does wonders for your water use efficiency.
Secondly, those tiny hoops inside the large ones create a humid and stagnant microclimate around the plants you are dipping and are much worse for mold. They also use more plastic than a single covering, and with some simple hardware that allows your blackout tarp to stay off the ground and be sized tight to your greenhouse you can get many more years of use than one that is getting pulled on and off hoops and sitting on the ground.
That’s the evidence they’ve presented visually to us all. Combine that with the marketing blather in the press release (their ultra premium estate grown small batch flower was best used as distillate biomass?) paints a picture of a heavily leveraged company hoping that their investors will buy the dream while they scramble to figure our how to generate cash flow.
There are operations owned and operated locally that are many times more sustainable than this one appears to be and who are actually working on developing revenue streams that could support a local boutique flower economy. What was displayed in that video and press release is not a viable future for our community. That’s some copium for some investors who were sold a dream
I agree the operation is a total inefficient mess. I think it’s good to post this because it shows just how poorly run these “corporate” ops can be. What I found bias was suggesting Kym was posting it because she knew the owners. To the contrary, if she knew them I would not recommend publishing it on a site where real operators could tear the video apart. It was clearly made for audiences outside the triangle.
Ah I see. I didn’t mean to imply anything negative about kym posting it. Her knowing them or them her neighbors were just my first guesses for a reason she would seek out and post the press release.
Maybe she just also thought it was funny? Or maybe she believes it’s valuable for us to see how these operations are doing? I don’t know.
Either way, I find it incredibly amusing and also depressing to know that operations like this are tying themselves to the traditions of the emerald triangle while they grow weed like some highschoolers in Michigan
Totally agree.
Holy shit, the video might be worse than the press release
All that bs to cover up that your junk went straight to cart distillate?
Fire your marketing dept.
Think they’ll make it, lol. Sounds hopeful and I bet them wallstreeters bite. So do they all get to use the Humboldt brand or just what’s produced from the 10k?
All I can say is wow… how bad was that video and investor pitch. I feel so much better about growing the good herb for the right reasons the right way.. bye bye Chad.
That Makana Ola promo video is more like a spoof reel. PVC hoops in raised beds with trucked in soil full of perlite isn’t exactly a model organic farm
What goes up, must. Come . DOWN.
Livewire Ergogenics current stock price is $0.0077 per share.
When we buy the Humboldt property at Auction we will be sure to play the video instead of using No Tresspassing signs.
Puke! All this crap is smoke and mirrors. “Distillate”, what year are we in? Money people trying to make money with something they nothing about. I had hope for so long that something good would actually come out of legalization, not anymore. Most Americans are happy with cheap, low quality products. We are a Walmart culture. So, why make a high quality product? The corporations don’t. Never have and never will. Enjoy your McWeed!
I’m dead. My comment was based on the press release and then I watched the video. ARE YOU KIDDING ME?!? I would immediately fire anyone and everyone that had anything to do with that video. Wow. Fake it till you make it, I guess.
??
THE VIDEO.??
So…
Lil gloss. Some baby clones. Lion King music, plus steal a scene from it too.
Who waters with a loose hose end like that? Did those plants make it to harvest?
THEY MAKE VAPE CARTRIDGES.
That explains it all.
The freaking vape industry. OMG.