Decrease in net revenue, increase in losses for Greenway Cannabis in annual report
Greenway Cannabis reported a $4.7 million loss from $5.2 million in net revenue for the year ending March 31, 2024.
This is a decrease in net revenue ($5.6 million in 2023) and an increase in loss and comprehensive loss ($2.6 million in 2023) compared to the previous year. The Ontario cannabis producer reports incurring $3,641 in excise tax for the year ending March 31, 2024.
Greenway Greenhouse Cannabis Corporation operates a nursery facility in Kingsville and a flowering and processing facility in Leamington.
As of March 31, 2024, Greenway reports a working capital deficiency of $852,605 (compared to $419,683 for March 31, 2023) and an accumulated deficit of $17,752,663 (March 31, 2023 – $14,453,209).
The Company says it has insufficient cash to pay creditors for its current working capital obligations and operations for the next twelve months. Its ability to continue as a going concern is dependent upon its ability to obtain sufficient additional funding and generate sufficient revenues and positive cash flows from its operating activities to meet its obligations and fund its planned investments and operations. This indicates the existence of a “material uncertainty that may cast a significant doubt about the Company’s ability to continue as a going concern.”
Greenway sold the equivalent of 5,548,692 grams of cannabis in its most recent fiscal year, a 33% increase from the previous year. As of March 31, 2024, it had an average cash cost of $0.74 per gram and a weighted average cash cost per gram of $0.60 of finished goods inventory on hand.
Cash cost per gram sold increased in Q4 2024, but cash cost per gram in finished goods decreased to its lowest level in the past year.
“This year, we’ve achieved record sales volumes, dramatically reduced liabilities, launched our first consumer brands in Ontario, completed a $3.5m private placement, and subsequent to our year end received the accreditation necessary to begin exporting Greenway cannabis internationally,” said Jamie D’Alimonte, CEO of Greenway. “Our team has been working to open up new avenues for our products and to diversify our revenue. The next steps for our team is to continue to increase the value we get from every gram we produce, and to continue to expand into our cultivation area to meet our ever-increasing demand.”
On April 26, 2024, Greenway announced that it had received CUMS-GAP and GACP certification, providing a pathway to distribute its product internationally.
On June 13, 2024, Greenway announced its MillRite Pink Moon was launching in a 2 x .5 gram pre-roll format across Ontario. It has also had its first two brands and SKUs accepted by the Ontario Cannabis Store (“OCS”) through the Winter 2023-2024 product call.
