KINGSVILLE, ON, Feb. 28, 2024 /PRNewswire/ - Greenway Greenhouse Cannabis Corporation (CSE: GWAY) (OTCQB: GWAYF) ("Greenway" or the "Company"), a cultivator of high-quality greenhouse cannabis for the Canadian market, today reported its interim financial statements for the third quarter ended December 31, 2023.
Highlights:
- The Company announced the closing of a non-brokered private placement for gross proceeds of $3,500,000, indicating continued investor support in an environment where fundraising is challenging in the cannabis industry
- Over the quarter, the Company reported $1,388,200 in revenue
- This is an increase of over 33% from the same quarter in fiscal 2023, and the second-best revenue quarter in the Company's history
- The Company sold 1,651,425 grams equivalent of cannabis; the highest amount sold in one quarter
- An average cash cost per gram expensed for the quarter of $0.72, within the range of management's $0.75 cash cost per gram target
- A weighted average cash cost per gram of $0.75 of finished goods inventory on hand as at December 31, 2023
- Subsequent to the quarter, the Company appointed Kyle Appleby as CFO
"I am pleased to see a large increase in revenue compared to last year. Much like other wholesalers in the industry, this quarter continued to see price compression across the industry, which we have also felt," said Jamie D'Alimonte, CEO. "To balance out the price compression we sold the most amount of biomass we have ever moved. This is one of the reasons we have chosen to move forward with our own brands, that will be launching in Ontario over the coming weeks."
"Over the course of this quarter, we saw some weather fluctuations that were well outside the norm for our region. Even with these adverse conditions, we were able to keep our costs within our management target of a $0.75 cash cost per gram," said Carl Mastronardi, President. "We are continuing to test out new cultivars and varieties, so we can make sure we are better able to better handle these shifts in weather patterns moving forward."
A copy of the interim financial statements for the quarter ended December 31, 2023 2023 are prepared in accordance with International Financial Reporting Standards (IFRS) and the related Management's Discussion and Analysis are available under the Company's profile on www.sedarplus.ca. All amounts expressed in this press release refer to Canadian dollars.
Non-IFRS Measures
Management uses a non-IFRS measure to assess the Company's performance. Non-IFRS measures do not have any standardized meaning under IFRS and are not a measure of financial performance under IFRS, and therefore, may not be comparable to similar measures presented by other companies. Please refer to page
1 of the Company's Management's Discussion and Analysis for an explanation of the composition of Adjusted EBITDA, an explanation of how it provides useful information to an investor and a quantitative reconciliation to the most directly comparable financial measure under IFRS, all of which is hereby incorporated by reference in this press release.
Reconciliations of Non-IFRS Measures
The following table reconciles the non-IFRS measure to the most comparable IFRS measure for the three and nine months ended December 31, 2023. This measure does not have any standardized meaning under IFRS and is not a measure of financial performance under IFRS, and therefore, may not be comparable to similar measures presented by other companies.
For the three months ended December 31, 2023 | |
Net Income (Loss) | (1,617,319) |
| Amortization - cost of sales |
386,909 |
Fair value adjustment on growth of biological assets | (83,837) |
Amortization - operating | 84,191 |
Share-based compensation | 585,244 |
Convertible debentures issued for investor relations services rendered | 120,000 |
Interest expense | 272,417
|
$ | |
Adjusted EBITDA | (252,395) |
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in the United States nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws and may not be offered or sold in the United States unless registered under the 1933 Act and any applicable securities laws of any state of the United States or an applicable exemption from the registration requirements is available.
About Greenway
Greenway Greenhouse Cannabis Corporation is a federally licensed cultivator for the Canadian cannabis marketplace. Greenway is headquartered in Kingsville, Ontario, and leverages its agriculture and cannabis expertise in its aspiration to be a leading cannabis cultivator in Canada. More information can be found on Greenway.ca and updates can be followed on Instagram, Twitter, Facebook, and LinkedIn.
The CSE has in no way passed upon the merits of the business of the Company and has neither approved nor disapproved the contents of this news release and accepts no responsibility for the adequacy or accuracy hereof.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements that constitute forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements in this news release that are not purely historical statements of fact are forward-looking statements and include statements regarding the Offering and the intended use of proceeds thereof, and the Company's beliefs, plans, expectations, future, strategy, objectives, goals and targets, the development of future operations, and orientations regarding the future as of the date of this news release. Although the Company believes that such statements are reasonable and reflect expectations of future developments and other factors which management believes to be reasonable and relevant, the Company can give no assurance that such expectations will prove to be correct. Forward- looking statements are typically identified by words such as: "believes", "expects", "aim", "anticipates", "intends", "estimates", "plans", "may", "should", "would", "will", "potential", "scheduled" or variations of such words and phrases and similar expressions, which, by their nature, refer to future events or results that may, could, would, might or will occur or be taken or achieved.
Forward-looking statements involve known and unknown risks, assumptions, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements, and includes those risks described in the Company's final prospectus dated September 3, 2021, a copy of which is available under the Company's profile at www.sedarplus.ca. Forward-looking statements are made as of the date of this news release and, unless required by applicable law, the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in these forward-looking statements
SOURCE Greenway Greenhouse Cannabis Corporation
