LiveWire Ergogenics has exercised its option and completed the acquisition of Makana Ola Farms in Humboldt, California.
As earlier reported, in September 2021, LiveWire executed a Letter of Intent to acquire a five (5%) equity position of Makana Ola Farms with the option to acquire one hundred percent of the Farm subject to meeting specific legal, licensing, and financial milestones. Now that Makana Ola has received its State license, is fully operational, and the due diligence process has been concluded, LiveWire has executed a definitive agreement to acquire one hundred percent of Makana Ola. The remaining 95% of Makana Ola has been acquired via a performance-based earn-out and will not require the issuance of any additional LiveWire common shares.
This acquisition will add an exceptional cultivation facility to LiveWire's portfolio of carefully selected affiliates and subsidiaries dedicated to cultivating environmentally sustainable sun-grown and handcrafted cannabis. In addition, Livewire has entered into a marketing and management agreement with Makana Ola and will begin an aggressive marketing and branding campaign for the products grown at the Farm. This will give the Makana Ola products access to the broad California distribution network that LiveWire has established with its affiliate companies.
Bill Hodson, CEO of Livewire Ergogenics, states, "Now that we have concluded the acquisition process and Makana Ola is a wholly-owned subsidiary, we are eager to move forward with increasing urgency to bring the exceptional products produced at Makana Ola to the California consumer market. This agreement establishes an even closer relationship with the Makana Ola team, the same team running the Estrella River Farms cultivation on Estrella Ranch and has proven to grow cannabis of exceptional quality. This is another step towards our goal of expanding our valuable roster of affiliate and subsidiary companies operating in the California cannabis market. We expect this transaction to have a material impact on the financial performance of LiveWire moving forward.
Jason Spain of Makana Ola Farms said, "As we had envisioned when we entered into the Letter of Intent with LiveWire, we are now ready to commence with the full operation and are well prepared to deliver our first full harvest in spring. Our family is happy to strengthen our ties with the Livewire family even further and participate in the inevitable success of Livewire."
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