LiveWire Ergogenics has acquired a minority equity position in Verde Partners, a Nevada-based investment firm and owner of one of the largest cannabis cultivation campuses in Coachella, California.
Livewire Ergogenics has executed a preferred and common stock swap agreement with the former CEO of Verde Partners. Under this agreement, Livewire exchanged 1 million preferred and 1 million common stock in Verde Partners, Inc. for 10,000 LiveWire Preferred B stock. This transaction represents the purchase of approximately 2.35% of the Verde preferred and 2.8% of the common shares outstanding. LiveWire is offering to purchase the remaining Verde Preferred and Common Shares under a similar stock swap formula, demonstrating its commitment to this strategic investment. Verde Partners has been a common stock shareholder of Livewire for several years.
Verde Partners' assets in California include the Del Gro Cannabis Campus in Coachella, California. The completed first phase, 110,000-square-foot indoor cultivation and manufacturing facility on six acres, is fully operational and consists of nine free-standing separate buildings with full security valued at $65 million. The planning, design, and permitting of the second phase of 110,000 square feet on an additional six acres is completed and ready to be built, further enhancing the Campus's capabilities and potential for growth.
The city of Coachella has embraced cannabis activities to broaden its tax basis and bring additional revenue to City Hall. The Del Gro campus, benefiting from this encouraging approach by the City, is a beacon of innovation in the California cannabis industry, providing an outstanding platform for boutique cannabis cultivators to develop their businesses in the ideal campus environment. Del Gro offers cultivators access to experienced cultivation professionals, distribution support, licensing compliance, processing, and extraction services. The Campus currently generates over $3.8 million in annual lease revenues, with a projected 2024 net operating income of approximately $5.5 million.
