LiveWire Ergogenics Announces Letter to Shareholders Anaheim, CA, Oct. 05, 2022 (GLOBE NEWSWIRE) -- LiveWire Ergogenics Inc. (OTC: LVVV)
Typically, we would not release another shareholder letter at this time of year, but we felt it crucial to keep you informed on some of the rapid developments over the last nine months. This letter summarizes our continuing efforts and achievements to develop Estrella Ranch in Paso Robles into California's premier cannabis cultivation and destination facility. We have made considerable progress in realizing our vision to create the world's first "Estate Grown Weedery" to cultivate the highest quality organic-style cannabis products on Estrella Ranch. We especially thank our Estrella team for their unwavering dedication to our cause and the loyal shareholders that have supported us on our journey; you are the reason we are here today.
During the initial pilot project on Estrella Ranch, Estrella River Farms cultivated the most beautiful sun-grown cannabis plants, proved the viability of our team's organic style and tractor-less farming process, and delivered the initial harvest to our distribution and manufacturing partner. They confirmed that the product was of exceptionally high quality, and the THC content has created an exceptional oil for use in its widely recognized vape products. A portion of this initial harvest is being developed into the "Estrella Weedery" brand of value-added specialty products for marketing through our new distribution partners, Kushagram and Green Eagle. Both companies have well-established distribution and delivery services throughout California, with a central warehouse location in Los Angeles. We will begin focused branding and marketing campaigns as soon as the product is ready for sale.
Before we get into the company details, a quick word about the general financial market conditions. We live in times of heightened economic volatility, mainly caused by supply chain imbalances, a relic of the two-year pandemic, causing a high inflation rate that has risen to 8% in 2022. Accordingly, most pieces of financial assets have declined from their 2021 highs. The S&P is down more than 14%, and the NASDAQ is down 22%. Many large cannabis stocks, especially many highly hyped and severely overextended SPACs have declined, several more than 50%. While this has created concern in financial circles, this might also represent a unique opportunity for investors to increase their position in reasonably priced cannabis stocks.
As we have discussed in recent releases, the past several months have been especially trying times for the entire cannabis industry. This was caused by decreasing flower prices, complex and expensive regulations, high taxation, and continuing illicit sales that still make up the larger portion of all cannabis sales. As of this writing, the conditions have not yet improved for many small operators and farmers but may be most troublesome for the large and overextended companies. An increasing number of cultivators have abandoned or are not renewing their licenses, overextended retailers and distributors shut down, and "For Sale" signs are going up on manufacturing facilities throughout the State. At least three National cannabis companies have either departed California, are planning to reduce the size of their operations significantly, or shut down altogether. Based on a reasonable cost structure and low overhead, companies with wide moats may be positioned to outperform those peer organizations that occasionally report significant revenues but consistently produce underwhelming earnings or large losses. We believe that with our approach to producing value-added and high-quality specialty products instead of mass production and reckless expansion, we have built such a moat that will allow us to generate increasing revenues and reasonable profits.
https://www.globenewswire.com/news-release/2022/10/05/2528876/0/en/LiveWire-Ergogenics-Announces-Letter-to-Shareholders.html