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LiveWire Ergogenics Inc (LVVV) – research report

05 Dec LiveWire Ergogenics Inc (LVVV) – research report

 

 

There is currently a ton of speculation that LVVV will be the next TBX pick.  The crazy end of the day trading action certainly signals that something is near... quite possibly a paid promotion.

 

The Research

The most curious part about LiveWire Ergogenics Inc (LVVV) to me is a mysterious foreign business entity called Azure Seas Ltd.

Azure Seas Ltd is the owner of at least 2,000,000 shares of LVVV stock. 

Azure Seas Ltd acquired those 2,000,000 shares from the original CEO, George Marquez in December of 2009 for $100,000.

Azure Seas Ltd then immediately replaced George Marquez with Richard O Weed making Richard O Weed the sole officer/director of the shell.

Richard O. Weed then hired himself as legal counsel paying himself 100,000 shares and $10,000/month for legal work.  Richard O. Weed also gave himself $1,500/month for his secretary duties.

 

Past associations for Azure Seas Ltd include:

 

Cono Italiano Inc (CNOZ)

With CNOZ, Azure Seas Ltd gained control of a $200,000 debt Note which originated when MEGK Group LLC (former owners of the CNOZ shell) acquired the licensing rights for Pizza Cono Products way back in 2007.  The $200,000 debt Note was passed on to Azure Seas Ltd in November of 2009.  On December 16, 2009, Azure Seas Ltd assigned $18,000 of the Note to various anonymous holders who immediately converted that $18,000 of debt into 18,000,000 shares of CNOZ stock.

On December 16, 2009, CNOZ was trading at $1.95/share.  Those anonymous shareholders got their 18,000,000 shares of stock for $.001/share.

The rest of the $200,000 (which was $180,000) was converted into 2,000,000 shares of stock owned directly by Azure Seas Ltd.

With 20,000,000 free trading shares of stock issued for so cheap it is no wonder that the CNOZ share price fell from $1.95/share to under $.05/share.

 

Sao Luis Mining Inc (BRZM) later known as Brazilian Mining Inc now known as Telefix Communications Holdings Inc (TLFX)

Azure Seas Ltd paid BlueWave Advisors $90,000 to promote BRZM  as a 3rd party shareholder in July of 2010.

 

Gold Bag Inc (GBGI) now known as Focus Gold Corp (FGLD)

Azure Seas Ltd became the majority owner of the FGLD shell in February of 2010 by purchasing 45,000,000 shares for $35,000.  Azure Seas Ltd immediately assigned Richard O Weed as the sole officer/director of the FGLD shell.

Richard O Weed then gave himself 1000,000 shares and a salary of $10,000/month to also act as legal counsel for the FGLD shell and $1,500/month for his role as secretary.

 

Who is Azure Seas Ltd?

No filings ever disclose to us the name of the person that controls Azure Seas Ltd.  All we know for sure is that Azure Seas Ltd is an anonymous foreign entity involved in purchasing control of publicly traded shells, purchasing debt Notes in public shells, and paying for the promotions of publicly traded shells.

In the LVVV filings, Azure Seas Ltd is listed as a Cooks Island entity.  In older filings connected to other shells, Azure Seas Ltd is listed as a UK entity.

There is no record of Azure Seas Ltd in the UK business entity data base.  It costs money to look up Azure Seas Ltd in the Cooks Island data base.

It seems very obvious to me that Richard O Weed is closely connected to Azure Seas Ltd.

 

Who is Richard O Weed?

Richard O Weed is an attorney from Newport Beach, California.  Together with his partner, April Frisby, he runs his own legal firm called Weed & Co, LLP.

 

 

Weed & Co, LLP currently acts as legal counsel for ADCF, ECDP, FGLD, LVVV, SYMW, UBEX, and VIZS

Besides acting as an officer, director, legal counsel, and shareholder in LVVV and FGLD, Richard O Weed is also currently an officer/director, legal counsel, and shareholder of Vizstar Inc (VIZS).

Richard O Weed is also a former officer and director of Endeavor Power Corp (EDVP), B2Digital Inc (BTDG), US Farms Inc (now revoked), GFY Foods Inc (now UBEX), Ingen Technologies Inc (IGNT), American IDC Corp (now STMC), and Investco Corp (IVCO).

 

Some history of the LVVV shell

Before becoming LiveWire Ergogenics Inc (LVVV) the shell was called SF Blu Vu Inc and came with 19,933,529 outstanding shares:

Azure Seas Ltd - 2,000,000 shares (purchased at $.05/share)
Richard O Weed - 100,000 shares (issued for services)
Seed Shareholders - 2,510,000 shares (purchased at $.05/share)
Sichenzia Ross Friedman Ference LLP - 423,529 shares (issued for services helping to take the shell public)
Anonymous Insider(s) - 15,000,000 shares (purchased for $.001/share right before the LightWire Ergogenics Inc acquisition)

 

On June 24, 2011, SF Blue Vu Inc issued 30,000,000 shares to acquire Livewire MC2, LLC, a California business entity controlled by Bill Hodson and Brad J. Nichols.

The 30,000,000 shares were split up as follows:

Bill Hodsen - 9,429,000 shares
Brian J Nichols - 9,729,000 shares
Richard O Weed - 1,500,000 shares
Other Livewire shareholders (which includes Danya Thompon, Terry Barnaby, Tony Torgerud, Dave Brown, and Jim Beuchler) - 9,342,000 shares

Bill Hodsen and Brad J. Nichols became the new officers of the LVVV shell.

As part of the share exchange agreement, Richard O Weed got to remain the secretary, director, and legal counsel for the shell.  He also got to continue his nice compensation package.

In September of 2011, the name of the entity was changed to Livewire Ergogenics Inc (LVVV).

Since that time 5,621,572 more shares have been issued:

1,004,070 shares were issued at $.20 to extinguish debt
1,264,668 shares were issued in private placements at $.29 - $.30/share to raise capital
535,000 shares were issued to Richard O Weed to settle unpaid salary at $.30/share
1,350,928 shares were issued to settle other accounts payable at $.23 - $.30/share
1,047,240 shares were issued to Hodsen and Nichols for unpaid salaries at $.20/share
419,666 were issued for other service rendered (consulting and employee salaries) at $.274/share.

 

Best guess the float is some where between 25,000,000 and 32,000,000 shares.

The biggest share issuance that points towards a future paid promotion was the 15,000,000 free trading shares issued at $.001/share right before Livewire acquisition.

 

What does Livewire do?

Here is the Livewire website.

Livewire sells Energy Chews which is soft chew (not gum) that also gives you energy.  The soft chew melts in your mouth in around 45 seconds and comes in 7 different flavors.

Livewire also sells Livewire Gear and Livewire Accessories.

 

 

In 2011, LVVV sold $402,122 worth of products.  So far through the first 9 months of 2012 sales are down quite a bit at $135,674.  That puts LVVV on pace for $181,000 in sales for the year (less than half their total from last year).

 

 

Will it be the next TBX pick?

Some people are already saying that LVVV is a confirmed TBX pick, but message board posters can rarely be trusted.  They will often just create speculation so that they can sell shares they already own for a profit.  I'm not totally sold on LVVV being the TBX pick, but it is very possible that TBX could promote LVVV.  I don't expect the next TBX promo to be a TBX linked shell. TBX seems to have reverted back to just being a promoter for hire and not much more so LVVV is a possibility.

The end of the day trade action for LVVV sure points to something like a promotion being near.  The 15,000,000 free trading shares issued at $.001/share plus the other 10,000,000 to 17,000,000 free trading shares also make a future paid promotion very possible.  LVVV hasn't seen very much volume before the end of the day today so most of those free trading shares are still waiting to be dumped.  Research tells us that the LVVV insiders do have some history with pump&dump type shells and past paid promotions.

Because of all the speculation and the history of the LVVV insiders, LVVV needs to be added to our list for a future paid promotion.  It will be interesting to see if Azure Seas Ltd ends up paying for the paid promotion (if there is one).  If TBX does pick this one up based on some of their recent picks I don't expect it to be a multi-day runner.  The profit window might be limited so play if smart if you decide to buy the stock.

 


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