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 and nine month periods ending December 31, 2021 and to report positive Adjusted EBITDA(1) for the second consecutive quarter.
A copy of the unaudited interim financial statements for the three and nine months ending December 31, 2021 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.com. All amounts expressed in this press release refer to Canadian dollars.
The Company is pleased to report the following results for the three months ended December 31, 2021 and that it has achieved positive Adjusted EBITDA(1) for such period:
|
Three months ended December 31, 2021 |
||||||||
|
Net Revenue |
$ |
1,186,186 |
||||||
|
Gross Profit, before inventory impairment and fair value adjustments |
$ |
227,262 |
||||||
|
Net Income (Loss) |
$ |
(460,431) |
||||||
|
Adjusted EBITDA |
$ |
20,223 |
||||||
“We are thrilled to report positive Adjusted EBITDA for a second consecutive quarter,” says Jamie D’Alimonte, CEO. “We are continuing to focus on the quality of the product we produce, and the results have been great so far. Through our B2B partners our products are now in five provinces and selling quickly. Our team understands the importance of getting our product to as many end consumers as possible.”
“We are continuing the drive towards profitability. I am proud of what we have been able to accomplish so far, but I believe our best is yet to come. Through COVID and some dramatic weather systems this quarter we managed to increase our revenue over the previous quarter and maintain a positive Adjusted EBITDA,” says Darren Peddle, CFO. “This is in no small part thanks to the wonderful leadership team we have assembled with generations of growing experience.”
Highlights
- Completed a private placement financing of units consisting of common shares and warrants for aggregate gross proceeds of $8,000,000 for the purpose of expanding both the cultivation and nursery facilities.
- Generated cannabis revenue of $1,186,186, a 2.5% increase from the previous quarter.
- The cost of sales was $958,924 resulting in a gross margin before inventory impairment and fair value adjustments of 19.2%.
- Greenway has had two consecutive quarters producing a positive Adjusted EBITDA.
- Greenway cannabis can be found in five provinces.
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 ended December 31, 2021. 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, 2021 |
|
|
Net Income (Loss) |
(460,431) |
|
Interest (income) expense, net |
220,533 |
|
Rental income |
(62,500) |
|
Fair value adjustment on sale of inventory |
282,469 |
|
Fair value adjustment on growth of biological assets |
(696,078) |
|
Amortization |
274,195 |
|
Share-based compensation |
102,900 |
|
Impairment of inventory |
211,395 |
|
Bad debt |
147,740 |
|
$ |
|
|
Adjusted EBITDA |
20,223 |
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.
About Greenway Greenhouse Cannabis Corporation
Greenway Greenhouse Cannabis Corporation is a federally licensed cultivator for the Canadian cannabis marketplace. Greenway Greenhouse is headquartered in Kingsville, Ontario, and leverages the agriculture and cannabis expertise of its experienced team to be a leading greenhouse cannabis cultivator in Canada. More information can be found on Greenway.ca and updates can be followed on Instagram, Twitter, Facebook, and LinkedIn.
