Greenway Reports Third Quarter 2023 Financial Results
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./
- Company submitted to Health Canada an application for both a standard processing license, and an expanded cultivation license
- Commenced trading on the OTCQB® Venture Market under GWAYF
- $0.60 cash cost per gram of finished inventory on hand at end of quarter
KINGSVILLE, ON, March 1, 2023 /CNW/ - Greenway Greenhouse Cannabis Corporation (CSE: GWAY) (OTC: GWAYF) ("Greenway" or the "Company"), 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 and nine month period ended December 31, 2022 and to consistently report positive Adjusted EBITDA(1).
A copy of the unaudited interim financial statements for the three and nine months ended December 31, 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.com. All amounts expressed in this press release refer to Canadian dollars.
The Company is pleased to report the following results for the quarter ended December 31, 2022:
Highlights:
- The Company generated revenue of $1,038,402, an increase of 103% compared to the same quarter in fiscal 2022
- Cash cost of sales were $508,368, producing a cash gross margin before fair value adjustments of 51%
- A quarterly positive Adjusted EBITDA of $81,275
- Greenway sold 733,885 grams of dried flower cannabis
- Greenway accomplished a cash cost per gram expensed during the quarter of $0.69
- For finished inventory at period end, the Company has capitalized $0.60 per gram
"We are glad to see our revenue increase so much in comparison to this quarter last year. I believe the longer-term effects of us submitting and subsequently receiving both our processing and expanded cultivation license is the larger story of this quarter," said Jamie D'Alimonte, CEO of Greenway. "Greenway produced another quarter with positive Adjusted EBITDA, and we believe that having a 300% increase in growing space moving forward, combined with the ability to process our own products will further move Greenway towards true profitability."
"Greenway was founded with the principal that we can grow higher quality cannabis in a more efficient way. Having low operating and administrative costs while the industry consolidates is vital for Greenway's long-term success. I believe the cannabis industry will continue to grow while companies will choose to outsource their production to Greenway." said Darren Peddle, CFO of Greenway. "I look forward to reporting a full fiscal year of low operating costs, low inventory balances, and a record high revenue."
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 2 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.
The following table reconciles the non-IFRS measure to the most comparable IFRS measure for the three months ended December 31, 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 December 31, 2022 | |
Net Income (Loss) | (576,461) |
Amortization – cost of sales | 177,267 |
Fair value adjustment on sale of inventory | 276,336 |
Fair value adjustment on growth of biological assets | (417,379) |
Amortization - operating | 126,243 |
Share based compensation | 231,850 |
Transaction costs | 17,126 |
Interest expense | 308,793 |
Rental Income | (62,500) |
$ | |
Adjusted EBITDA | 81,275 |
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 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.sedar.com. 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
Company Contact, Darren Peddle, CFO, Greenway Greenhouse Cannabis Corporation [email protected], 1-519-712-0311
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