Greenway Greenhouse Maintains Inventory Velocity and Announces New Cultivar
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KINGSVILLE, ON, Aug. 31, 2022 /CNW/ - Greenway Greenhouse Cannabis Corporation (CSE: GWAY) ("Greenway" or the "Company") is pleased to release a general corporate update regarding inventory, the development of a new product, as well as an update on the retrofit of 125,000 ft2 of cultivation space.
Greenway is happy to announce that over the course of its first 5 reporting quarters, Greenway has not destroyed any finished product.
The Company would like to emphasize, per the financial statements as of June 30, 2022, that inventory is not accumulating. Greenway is a cultivator of high-quality cannabis that has achieved sales velocity due to its value proposition to its customers.
During the quarter ending December 31, 2021, Greenway reported an impairment expense of $211,395. Management notes that this was not destroyed product, but a particular new genetic that failed to meet the Company's high standards for THC content. In a subsequent period, the product was sold as extraction grade quality. The Company is committed to sell all inventory in its secured storage.
Greenway is pleased to announce a new strain that is becoming commercially available, with an announcement of the commercialization name coming soon. "Strain X" is a sativa leaning hybrid, that brings a unique smell and flavour profile to Greenway's already robust offerings. Heavily featuring Limonene, Ocimene and Humulene; this new strain offers another cultivar in the Greenway line-up that is very distinct. Strain X has consistently tested in excess of 26% THC, a 2%+ Terpene profile and is consistent with Greenway's focus on high yields by averaging over 175 grams per plant.
The cultivar is proprietary to Greenway, and was both developed and fostered by Greenway's Master Grower, Jawad Skieneh.
Greenway is pleased to see that distribution from the Ontario Cannabis Store to retail stores has fully resumed, and through Greenway's multiple brand partners we are starting to see product levels in stores return to where they were prior to the distribution issue.
Greenway is also closely monitoring the situation currently occurring in British Columbia. Greenway has not yet seen any adverse effects, and we hope for a quick resolution.
Greenway is pleased to announce that our expansion plan is still on time and on budget to be operational in Q1-2023.
Over the last 30 days the expansion has seen the completion of new electrical and venting systems, the completion of the exterior insulated steel panel walls, and the underground drainage systems in the greenhouse portion of the expansion. In the processing area Greenway has finished pouring all new concrete, has finished epoxying both the first and second floors, main floor wall partitions are being installed, and we are in the process of installing new HVAC systems.
"Our team is aware of recent news about the significant amount of cannabis that has been destroyed across the industry. This may be an issue for other companies but Greenway has not destroyed any finished product." said Darren Peddle, CFO of Greenway. "This is why we started the Company at a small scale, as a right sized operator ? so we can focus on quality and sell what we grow."
"I am excited to show off our new strain, "Strain X". This strain is completely unique to Greenway, and helps expand our offerings to more fully represent all of the distinct demands of the cannabis consumer. Our first full batch has already presold, proving how well it adds itself to our current offerings "said Carl Mastronardi, President of Greenway. "We are also pleased to hear and see through our partners that the OCS distribution issue seems to be behind us, and consumers are able to find Greenway cannabis across the province."
"I am proud of what our sales and cultivation teams have been able to accomplish so far. We are growing some phenomenal product, and we are finding places for it in the B2B market. At the end of the day, just like in produce, we know you must be able to sell what you grow to be successful," Jamie D'Alimonte, CEO of Greenway. "The retrofit of both our greenhouse and production areas remains both on time and on budget, something we could not have done without the experience and dedication of our leadership team."
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.
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.
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
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