2022-07-29 | CSE: GWAY | Press release

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KINGSVILLE, ON, July 29, 2022 /CNW/ -– Greenway Greenhouse Cannabis Corporation (CSE: GWAY) (“Greenway Greenhouse” or the “Company”), a cultivator of high-quality greenhouse cannabis for the Canadian market, today released its annual audited financial statements. for the fiscal year ending March 31, 2022.

A copy of the annual audited financial statements for the year ending March 31, 2022 are prepared in accordance with International Financial Reporting Standards (IFRS) and the related MD&A is available under the Company’s profile on www.sedar.com. All amounts expressed in this press release are in Canadian dollars.

The Company is pleased to report the following results for the year ending March 31, 2022:

Strong points:

  • In the first year as a licensed producer, Greenway reported adjusted EBITDA of -298,497 on $1,984,317 income
  • Greenway harvested its first crop in April 2021and started sales in July 2021providing the Society with three quarters to produce income.
  • The observed THC content, quality and quantity improve with each subsequent harvest.
  • Achieves the industry’s best cost per gram to produce
  • In September 2021, Greenway listed its common stock on the Canadian Stock Exchange (CSE) under the ticker symbol GWAY.
  • Greenway completed a non-brokered private placement which was fully subscribed, raising aggregate gross proceeds of $8,000,000.
  • In February 2022, the company announced an expansion that will provide Greenway with 167,000 sq. ft., which will increase cannabis production capacity by 300%

“Our team is proud of what we have been able to accomplish so far,” said Carl Mastronardi, President of Greenway Greenhouse. “We have grown very high quality cannabis, which we have seen both in our test results and in how the public has rated our products. We are proud of the partnerships we have in the market today and we look forward to expanding partnerships and public access to our cannabis over the next year.”

“Greenways management has been grateful for the support it has received from the public and shareholders during our first year. From our quality to our low overhead and fiscal transparency, Greenway continues to strive to be the best in the industry,” said Jamie D’Alimonte, CEO of Greenway Greenhouse. “We are continually striving to become more efficient and cost effective, and we believe that this coming year will see us take another big step forward to show our true potential.”

“For our first year of revenue, of which only the last 9 months have generated revenue, I am very pleased that we have a negative adjusted EBITDA of $298,497 for the full twelve months. In this competitive industry, it is not possible to have a long list of customers in your first year of sale. However, by the end of the fourth quarter, the reputation for high quality of our cannabis had certainly contributed to the acquisition of new customers. Management is very positive about the future of this business,” said Darren Peddle, CFO of Greenway Greenhouse.

Modification of the three-month period ending December 31, 2021.

In addition, the Company, after careful consideration, has decided to file amended financial statements for the third quarter. From December 31, 2021the Company had a debit balance of $673,530 from dried cannabis that had been sold and shipped to Agro-Greens Naturals Ltd (“Agro-Greens”). The following month, Agro-Greens announced to the public that it was ceasing operations. Due to collectability issues, the Company elected to reverse the sale transactions for the balance due and classify it as a contract asset. During the following quarter, the contract asset was fully impaired.

The Company would like to point out that after the end of the financial year, all balances included in accounts receivable March 31, 2022, were collected in their entirety without any problems. Greenway Greenhouse has acquired new customers which have improved its profitability and collection capacity.

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 others. companies. Please refer to page 1 of the Company’s MD&A 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, which is 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 twelve months ending March 31, 2022. This measure does not have a 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 year ended March 31, 2022

Net profit (net loss)

(2,922,914)

Interest (income) expense, net

850 358

Rental income

(250,000)

Fair value adjustment on sale of inventory

507 701

Fair value adjustment on growth of biological assets

(599,116)

Damping – operation

538,007

Depreciation – cost of sales

175 293

Stock-based compensation

312,784

Transaction costs

191,425

Inventory write-down

211,395

bad debt

13,040

Impairment of contract asset

673,530

$

Adjusted EBITDA

(298,497)

This press release does not constitute an offer to sell or the solicitation of an offer to buy securities of United States nor will 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 law and may not be offered or sold in United States unless registered under the 1933 Act and any applicable securities laws of any State of United States or an applicable exemption from the registration requirements is available.

Greenway Greenhouse Cannabis Corporation is a federally licensed cultivator for the Canadian cannabis market. Greenway is headquartered in Kingville, ONand leverages his expertise in agriculture and cannabis in his aspiration to become a leading cannabis grower in Canada. More information can be found at Greenway.ca and updates can be followed at instagram, Twitter, Facebookand LinkedIn.

The CSE has in no way conveyed the merits of the Company’s business and has neither approved nor disapproved of the contents of this press release and accepts no responsibility for its adequacy or accuracy. .

Caution Regarding Forward-Looking Statements

This press release contains forward-looking statements that constitute forward-looking information (collectively, “forward-looking statements”) within the meaning of applicable Canadian securities laws. All statements in this press release that are not statements of purely historical facts are forward-looking statements and include statements regarding the Offering and the intended use of proceeds thereof, as well as the beliefs, plans , expectations, future, strategy, objectives, goals and objectives, development of future operations and directions regarding the future as of the date of this press release. Although the Company believes that these statements are reasonable and reflect expectations of future developments and other factors that management believes are reasonable and relevant, the Company cannot guarantee that these expectations will prove to be correct. Forward-looking statements are generally identified by words such as: “believes”, “expects”, “aims”, “anticipates”, “intends”, “estimates”, “plans”, “may” , “should”, “”, “will”, “potential”, “expected” or variations of such words and similar phrases and expressions, which by their nature refer to future events or results that may, , could or will occur or be taken or achieved.

Forward-looking statements involve known and unknown risks, assumptions, uncertainties and other factors that 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 forward-looking statements, and includes the risks described in the Company’s final prospectus dated September 3, 2021a copy of which is available under the Company’s profile at www.sedar.com. Forward-looking statements are made as of the date of this press release and, except as required by applicable law, the Company undertakes no obligation to update any forward-looking statements or to update the reasons why actual results could differ from those projected in these forward-looking statements. – look at the statements.

SOURCE Greenway Greenhouse Cannabis Corporation

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