Company Announcements

KINGSVILLE, ON , Aug. 27, 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 filed its unaudited condensed interim financial statements for the first quarter ended June 30, 2025.

Highlights for the quarter ended June 30, 2025. All amounts are expressed in Canadian dollars:

• Average net sales price per gram increased to $1.71 (Q1 F2025: $1.11): a 54% increase per gram and a cash cost per gram in finished goods decreased to $0.70 (Q4 F2025: $0.92). This is the highest difference in sales price to cash cost in the Company's history.
• Net cannabis revenue of $1,621,062 (Q1 F2025: $2,394,159).
• Gross profit improved to $841,227 (Q1 F2025: $342,922).
• Gross margin improved to 50% (Q1 F2025: 14%); gross margin before fair value adjustments rose to 30% (Q1 F2025: 14%).
• Adjusted EBITDA was $78,723 (Q1 F2025: $316,431).
• Net loss narrowed to $166,453, an improvement of $375,025 (69%) compared to Q1 F2025, driven by higher gross margin.
• Finished goods inventory totaled 1,274,617 grams valued at $1,174,581, positioning the Company to meet purchase orders.
• Cash balance of $2,192,005 with positive working capital (excluding related party amounts) of $4,203,627.

International Growth Strategy

On July 31, 2025, Greenway entered into a supply agreement with 4C LABS, a leading medical cannabis company in the United Kingdom, focused on providing patients with world-class medical cannabis products. Through this agreement, Greenway expects to supply high-quality dried flower to 4C LABS, one of the UK's leading importers and distributors of cannabis-based pharmaceuticals.

As part of this international expansion strategy, Greenway has strategically increased its finished goods inventory. International cannabis sales typically have longer sales cycles, and maintaining higher inventory levels ensures the Company is prepared to meet the needs of global partners moving forward.

"This quarter demonstrates the resiliency of our model and the discipline of our team," said Jamie D'Alimonte, CEO of Greenway. "Despite lower volumes, we achieved significantly higher pricing, improved gross margins, and a substantial reduction in net loss. Our focus remains on aligning production with the most profitable sales channels — wholesale, branded products, and international sales."

"Importantly, we strengthened our balance sheet position while reducing cash costs per gram," added Carl Mastronardi, President of Greenway. "With over 1.2 million grams of finished goods inventory on hand, Greenway is well-positioned to fulfill upcoming purchase orders and capitalize on both domestic and international opportunities, through our international sales agreements like our recent supply agreement with 4C LABS in the UK. This should help us maintain our current sales price, while increasing quarterly volume moving forward."

A copy of the unaudited condensed interim financial statements for the quarter ended June 30^th, 2025 (prepared in accordance with IFRS Accounting Standards ("IFRS")) and the related Management's Discussion and Analysis are available under the Company's profile on www.sedarplus.ca. 

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 quarter ended June 30, 2025. 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.

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 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