PR Newswire
KINGSVILLE, ON, Aug. 28, 2024
KINGSVILLE, ON, Aug. 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 quarter ended June 30, 2024.
The Company is pleased to report the following results for the quarter ended June 30, 2024:
Highlights:
- Greenway set a number of new milestones this quarter, having achieved its highest net revenue & Adjusted EBITDA results to date. Furthermore, Greenway also achieved positive net cash flow provided by operating activities, and the highest amount of cannabis sold in a quarter to date
- Net revenue of $2,394,159 in the quarter, compared to $1,174,189 in the same Quarter in the previous year, a 104% increase
- Greenway reported a Positive Adjusted EBITDA of $316,431, compared to $16,408 in the same Quarter in the previous year
- Cost of sales comprised of $1,567,437 of cash expenses and $483,800 of amortization expense resulting in a total gross margin before inventory impairment and fair value adjustments of 14%
- Positive net cash provided by operations in the quarter of $55,418
- 2,153,628 grams or grams equivalent sold in the period, compared to 1,107,536 in the same Quarter in the previous year, an 94% increase
- Greenway saw an increase in the domestic wholesale price of cannabis, which continues to rebound
- An average cash cost per gram expensed for the quarter of $0.73, comprised of all crop inputs and wages, all packaging, shipping and facility repairs and maintenance
- A weighted average cash cost per gram of $0.59 of finished goods inventory on hand as at June 30, 2024
"We are thrilled to announce a record-breaking quarter, achieving a record net revenue, EBITDA, and achieved a positive net cash flow provided by operating activities. This performance reflects our focus and commitment to producing quality cannabis, and finding the best partners and pathways to bring it to consumers," said Jamie D'Alimonte, CEO of Greenway. "We achieved this while still keeping our cost of production low, and our yields high. This combination is what we believe separates us from other public cannabis companies in Canada."
"This is the first full quarter that includes sales of our branded products, and I'm pleased to share that our MillRite pre-rolls ranked as the second highest-selling in Ontario within their size category. Additionally, we recently completed our first harvest intended for international markets, the next step in distributing Greenway cannabis globally."
A copy of the interim financial statements for the quarter ended June 30, 2024 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 months ended June 30, 2024. 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, 2024 | |
Net Income (Loss) and Comprehensive Loss | (541,478) |
Amortization – Cost of sales | 483,800 |
Amortization – Operating expenses | 105,060 |
Interest expense | 269,049 |
$ | |
Adjusted EBITDA | 316,431 |
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.
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 betaken 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.
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SOURCE Greenway Greenhouse Cannabis Corporation
