Greenway Provides Cultivation and Market Update

Rhea-AI Summary

Greenway Greenhouse Cannabis (GWAYF) has announced key operational updates and market improvements. The company has applied to Health Canada for new dedicated propagation space at its Leamington, Ontario facility, aiming to increase production efficiency and achieve six full crop rotations annually. The company reports strong market performance with revenue per gram increasing for 6 consecutive quarters from $0.84 to $1.58. Their MillRite brand maintains a strong market position, ranking #2 in the 2x0.5G pre-roll category. The company is expanding its product line with new pre-roll sizes and entering the blunt category. Additionally, Greenway has re-launched The Jeffrey pre-rolls in Ontario with three size options. Management notes positive trends in both domestic and international wholesale markets, with improved commercial terms and efficient inventory turnover.

Positive

• Revenue per gram increased 88% over 6 quarters from $0.84 to $1.58
• Strong market position with MillRite brand ranking #2 in 2x0.5G pre-roll category
• Pre-sold inventory indicates strong demand and efficient operations
• Expansion of product line with new pre-roll sizes and blunt category entry

Negative

• Pending regulatory approval from Health Canada for propagation space expansion
• Current facility not operating at optimal six crop rotations per year

KINGSVILLE, ON, May 9, 2025 /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 announced it has applied to Health Canada for new dedicated propagation space at the Leamington, Ontario facility, which should help increase the number of batches the facility can grow annually, and provided an update on current market dynamics.

Greenway has applied through Health Canada to create new dedicated propagation and vegetation space at its current cultivation facility located in Leamington, Ontario. This new space is meant to be utilized for mid-stream propagation, allowing Greenway to gain space and time efficiencies in their flowering rooms. By doing this, the Company believes it will be able to increase the amount of biomass the facility can throughput annually and should help Greenway move toward its goal of having six full crop rotations every year.

"We are always looking for new ways to increase our efficiency and lower our costs, and changing over this space will better equip us to achieve both of those goals," said Carl Mastronardi, President of Greenway. "We have found by giving our cuttings coming over from our nursery more time to become acclimated to the greenhouse environment before moving into the flowering stage, we receive higher production from our premium genetics. By having this new dedicated space, we can make sure that the plants remain in the most optimized environment for each stage of their development. Space and timing efficiencies are one of the ways we can continue to make incremental progress as a grower."

Supply and Wholesale Price Update

Greenway continues to see positive signs that the wholesale domestic and international markets are rebounding from the lows of 2023. The Company's revenue per gram has been steadily increasing for 6 straight quarters, from $0.84 to $1.58 per gram.

"As we have seen the wholesale price of cannabis for Greenway increase, the speed at which we have been able to move our crops has also increased. This trend has continued since our most recent quarter and shows no signs of regression. Everything we are growing right now and over the last few months has had a home before it has even finished being harvested," said Jamie D'Alimonte, CEO of Greenway. "This is a great sign for the industry, as it ensures consumers are getting the freshest product possible, and that Greenway is not sitting on any inventory. With both the domestic and international markets heating up rapidly over the last 18 months, we have also been able to move towards more advantageous commercial terms."

CPG Update

Greenway's MillRite brand continues to be a leader among pre-rolls in the 2x0.5G size category, being the #2 ranked brand and having both the #2 ranked Indica and Sativa pre-roll in the segment with their Lavender Haze and Pink Moon. Over the next few months, the MillRite has new pre-roll sizes coming to Ontario, including its first foray into the blunt category with the Lavender Haze 1 gram glass tipped blunt arriving on store shelves before the end of May.

In April, Greenway re-launched The Jeffrey pre-rolls in Ontario, which are now available across the province for purchase in three convenient sizes, helping expand Greenway's presence into new size categories.  

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.

About Greenway

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.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

FAQ

What is GWAYF's current revenue per gram and how has it changed?

Greenway's revenue per gram has increased for 6 consecutive quarters from $0.84 to $1.58, representing an 88% increase.

What facility expansion has Greenway applied for in May 2025?

Greenway has applied to Health Canada for new dedicated propagation and vegetation space at its Leamington, Ontario facility to improve efficiency and increase annual biomass production.

How is Greenway's MillRite brand performing in the pre-roll market?

MillRite is the #2 ranked brand in the 2x0.5G pre-roll category, with both #2 ranked Indica (Lavender Haze) and Sativa (Pink Moon) products.

What new products is GWAYF launching in 2025?

Greenway is launching new MillRite pre-roll sizes and entering the blunt category with a Lavender Haze 1 gram glass-tipped blunt, plus The Jeffrey pre-rolls in three sizes.

What is Greenway's current market position in wholesale cannabis?

Greenway reports strong wholesale market performance with pre-sold harvests and improving commercial terms in both domestic and international markets.