Yes it is, but they are also in the process of uplifting to OTCQB, which offers a whole new level of transparency via the auditing and reporting requirements. But the fact that it's a penny stock is also the allure - there have been many cannabis companies that have gone from pennies to dollars, and that meteoric rise is almost impossible to find in anything other than a penny stock.

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2. The company isn't making real money - yet.

They aren't, but they just got their cultivation license a week ago and clones sales should be their main source of income going forward. If they were already making significant revenue, the stock wouldn't be available for 2 or 3 pennies. The penny game is all about getting in on the ground level, and that has allowed us to scoop up hundreds of thousands of shares in a company now poised - as of last week - to start generating significant revenue.

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3. The company has NOT received all of the permits it needs to do business yet.

Incorrect.

They have not received all the permits they are seeking, and this will be ongoing since they will continue to expand to multiple localities, but they DO have all of the permits they need to do business from the Coachella location. They have all the city permits in addition to the state cultivation, distribution, and sales licenses. They can now be fully operational at Coachella. They are still awaiting licenses and permits at the Paso Robles location and at least one other location.

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4. The primary owners/founders had an obscure energy chew company before this one - not proven leadership.

The energy chews are what got me onboard, despite being a failure commercially. As someone who used to chug massive quantities of Red Bull and Monster, as well as having tried 5 hour energy shots and all the others, the Livewire Energy chews were the ONLY energy boost product that actually worked for me. I could walk into my local GNC and buy the energy chews from a box with Randy Moss' picture and endorsement on it. They put everything together with that product, but it just didn't sell. Not all good products make it, but the quality of the product made me take notice of the company.

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5. The clones are not proven to actually be any good.

They have over 160 proven strains in addition to their own. Photos of their clones show healthy, thick-stemmed plants. They have experienced and reputable horticulturists. This is not a concern at all in my opinion.

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6. The 7x Pure certification system is more marketing than an actual standard.

3rd party testing, verification, and tracking are required for distribution, so it is a bonus that we have a state distribution license AND our own proprietary certification system that goes above and beyond the standards. The city of Coachella, which will be a major cannabis hub in the near future, is running a pilot program to use 7x Pure as their "official" certification system, which could be huge for Livewire. If nothing else, having the 7x Pure stamp on our own clones and products is a confirmation of the quality of our product.

It didn't hit .08 on the Canadian legalization hype - that peak coincided with the initial Coachella cultivation permit and the loi with Mojave Jane. Likewise, it hit .06 based on the state distribution license. It will ebb and flow as all penny stocks do, which makes it a good play for the short term investor as well. By getting onboard in July, I've had opportunities to sell at 50% profit in October and 20% last week. Investors who came on board in late December had the opportunity of 250% gains last week. At this point I'm choosing to just hold long.

I'm not saying there is no risk involved - of course there is, it's a penny stock and basically a start-up. But even for someone who has been in since July and bought as high as .055/share, the stock has already proven itself (unless you've strictly bought in at the high points). In the past 6 months I've made around 2 dozen buys, so I've dollar-cost-averaged over that time to acquire my 400,000 shares. As a short play, it has offered significant gains if I had chosen to sell along the way. In the long run, it offers a shot at gains of 1,000% or more.

Outside of LVVV, all of my investment dollars are in total stock market/total bond market index funds with a goal of 5-6% growth over the next 15-20 years. LVVV is my "homerun" play. Great rewards only come with great risk, but I have faith in the business plan and people behind Livewire.

This post was edited on 1/7/19 at 12:40 pm