Greenway Announces Record Revenue Quarter

Published: August 17, 2022

Greenway Announces Record Revenue Quarter

Greenway Greenhouse Cannabis Corporation, a cultivator of high-quality greenhouse cannabis for the Canadian market, is pleased to announce the release of its unaudited interim financial statements for the three month period ending June 30, 2022 and to report positive Adjusted EBITDA.

A copy of the unaudited interim financial statements for the three months ending June 30, 2022 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.sedar.comAll amounts expressed in this press release refer to Canadian dollars.

The Company is pleased to report the following results for the quarter ending June 30, 2022:

Highlights:

  • The Company generated revenue of $1,963,709, almost equaling the entire revenue of Greenway’s previous fiscal year of $1,984,317.
  • Greenway’s revenue is approximately 70% greater this quarter than the previous best quarter of $1,156,930 in Q2/F22.
  • Cost of sales were $1,375,551, producing a gross margin before fair value adjustments of 30%.
  • A weighted average cash cost per gram of $0.64 of finished goods inventory on hand as at June 30, 2022 (excludes depreciation and fair value portions)
  • Quarterly operating expenses were $677,457, up $193,731 or 40% from Q1/F22 which compares favourably since the Company launched operations and has become a public company in the last year
  • A quarterly positive Adjusted EBITDA of $390,094
  • Greenway doubled the amount of unique business-to-business partners from the previous quarter.

“This was an amazing quarter for Greenway, where we are seeing what our team can do even before we scale up,” said Carl Mastronardi, President of Greenway. “We keep improving our quality, and will continue to hone in our growing technique. I believe this quarter shows what we can do moving forward.”

“Our revenue in this quarter alone was almost 99% of our revenue of the previous fiscal year, and 70% greater than our previous highest quarter” said Darren Peddle, CFO of Greenway. “We sold over 1.3 million grams of cannabis, a huge feat with only 41,750 ft2 of growing space. Greenway is currently expanding our production facilities to four times the current production capacity, which will bring economies of scale as well as widen our appeal to institutional and individual investors.”

“This quarter we achieved record revenue, a record amount of cannabis sold, and record positive Adjusted EBITDA, all while keeping our overheads extremely low,” said Jamie D’Alimonte, CEO of Greenway. “Our team has decades of experience in the hydroponic greenhouse industry, and it is showing. We believe Greenway can compete with any cannabis producer of any size. Our strategy is exactly how we scaled other crops; start small, prove we can deliver a quality product, then expand the footprint.  Our commitment is to grow high-quality cannabis at scale, while maintaining low costs of production and overheads.”

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 months ending June 30, 2022. 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 June 30, 2022 ($)

Net income (loss) and comprehensive income (loss)

(52,876)

Interest expense

278,416

Rental income

(62,500)

Fair value adjustment on sale of inventory

253,930

Fair value adjustment on growth of biological assets

(506,269)

Amortization – operating

126,243

Amortization – cost of sales

258,750

Share-based compensation

94,400

$

Adjusted EBITDA

390,094

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 InstagramTwitterFacebook, and LinkedIn.