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Greenway’s audited year end financial statements

(CNW) Kingsville, Ont. — Greenway Greenhouse Cannabis Corporation, a cultivator of high-quality greenhouse cannabis for the Canadian market, today reported its audited annual financial statements for the year ended March 31, 2023.

A copy of the audited annual financial statements for the year ended March 31, 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.

The company is pleased to report the following results for the year ended March 31, 2023:

Highlights:

• Over the fiscal year, Greenway reported a Positive Adjusted EBITDA of $603,188 on $5,621,933 of revenue, a 183 per cent increase in revenue over the prior fiscal year
• Cost of sales comprised of $3,154,061 of cash expenses and $853,333 of amortization expense resulting in a total gross margin before inventory impairment and fair value adjustments of 29 per cent
• An average cash cost per gram expensed for the year of $0.76, comprised of all crop inputs and wages, bulk packaging, shipping and facility repairs and maintenance
• Inventory impairment of $354,256, comprised of $278,616 of cash costs and $75,640 of amortization costs, due to low market prices for wholesale cannabis as at March 31, 2023
• A weighted average cash cost per gram of $0.58 of finished goods inventory on hand as at March 31, 2023
• Expanded into new markets, with over 96 per cent of Canadian cannabis users now having access to Greenway cannabis
• Increased licensed cultivation area, and received a Standard Processing License
• In December, 2022, Greenway listed its common shares on the OTCQB® Venture Market (OTCQB), under the ticker symbol GWAYF
• Recognized a gain on the sale of the surplus asset of $193,484

“Our team is proud of what we have been able to accomplish this year, from the large increase in revenue and ensuring our product is available to as many Canadians as possible. We have another full year under our belts of growing great products, delivering value to our customers, and creating memorable experiences for consumers.” — Carl Mastronardi, president, Greenway

Debt Settlement Share Transfer to Hybrid Financial

As well, the company, has issued 964,285 common shares to Hybrid Financial Ltd., a marketing services provider, in partial settlement of outstanding debt in accordance with the debt settlement agreement previously announced by the company on July 14, 2023.  The settlement shares have a deemed issuance price of $0.28 per share.

The settlement shares were issued in reliance on a prospectus exemption pursuant to securities legislation and are subject to a four-month plus one day statutory hold period ending on November 25, 2023.  The issuance of the settlement shares in partial settlement of the debt remains subject to all necessary regulatory approvals including final acceptance by the Canadian Securities Exchange.

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 twelve months ended March 31, 2023. 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.