Greenway Greenhouse Cannabis Corp. · CSE:GWAY
Greenway Greenhouse Cannabis — Investor Presentation (March 2022)
27 slides from Greenway Greenhouse Cannabis's investor presentation, March 2022
Slide 1: Corporate Presentation Q4-FY22
CORPORATE PRESENTATION Q4 – FY`22 EMERGING LOW-COST PRODUCER IN CANADA’S WHOLESALE CANNABIS MARKET WWW.GREENWAY.CA CSE: GWAY
Slide 2: Disclaimer
2 DISCLAIMER FORWARD-LOOKING STATEMENTS Certain information set forth in this document ( “Presentation”) contains “forward-looking statements” and “forward-looking information” within the meaning of applicable Canadian securities legislation (referred to herein as “forward-looking statements”). Exce
Slide 3: Disclaimer (Cont'd)
3 DISCLAIMER (CONT’D) OTHER CAUTIONARY NOTES FUTURE-ORIENTED FINANCIAL INFORMATION To the extent any forward-looking statement in this Presentation constitutes “future-oriented financial information” or “financial outlooks” within the meaning of applicable Canadian securities laws, such information
Slide 4: Investment Thesis
4 INVESTMENT THESIS Demonstrated ability to leverage management expertise and depth of experience in deploying high-margin, low-cost cultivation methods to rapidly scale indoor greenhouse production to profitability Founded by Carl Mastronardi & Jamie D’Alimonte, award-winning produce Experienced &
Slide 5: Greenway at a Glance
5 GREENWAY AT A GLANCE First-mover in Canada’s emerging era of profitable cannabis cultivation, committed to delivering shareholder value with industry-leading production unit economics that are conducive to long-term profitability Leading Annual Production Products Sold Profitable Licensed Capacity
Slide 6: Our Journey to Leadership in Cultivation
6 OUR JOURNEY TO LEADERSHIP IN CULTIVATION Tracing back to the inception of Canada’s renowned DelFresco® flagship, management has a long history in establishing highly profitable indoor greenhouse cultivation ventures that has now enabled them to showcase their cultivation expertise on a global scal
Slide 7: Compelling Portfolio of Premium Dried Flower
7 COMPELLING PORTFOLIO OF PREMIUM DRIED FLOWER The Greenway Difference: Reputation for exceptional quality & highly trusted by end consumers Sun Country Kush Blackberry Gelato #8 GG9 Lemon Pound Cake THC: 20% - 27% 19% - 26% 20% - 24% 19% - 24% Terpene (%): 1.8% - 3.0% 1.5% - 2.5% 1.8% - 3.1% 1.5% -
Slide 8: Methodical Approach to Growing Market Share
8 METHODICAL APPROACH TO GROWING MARKET SHARE Greenway’s strategy focuses first on leveraging our competitive edge in cultivation & low-cost production to quickly capture larger market share in the high-growth Canadian Adult Recreational market, offering premium quality dried cannabis flower product
Slide 9: Cutting-Edge Cultivation Assets
9 CUTTING-EDGE CULTIVATION ASSETS Greenway’s unrivalled nursery facility Location: Kingsville, Ontario utilizes the most advanced technology in propagation equipment & infrastructure Current Nursery Area: ~10,000 ft2 to solve two major challenges facing large-scale growers – consistent access to Nur
Slide 10: Cutting-Edge Cultivation Assets (Cont'd)
10 CUTTING-EDGE CULTIVATION ASSETS (CONT’D) Prior to Greenway’s direct-listing to the CSE in September 2021, the Company invested ~C$10.6 million1 to complete retrofit construction of one of the DelFresco® Group’s greenhouses to serve as the company’s primary state-of-the- art cultivation facility f
Slide 11: Q1-FY23 Facility Expansion
11 Q1-FY23 FACILITY EXPANSION Proceeds from successful closing of C$8.0 million equity offering in Dec 2021 will be used to fund capital expenditures for a facility expansion, quadrupling current annual production capacity to ~24,000 kg /year1 ▪ January 1st, 2022 cash position: ~C$9.6 million Curren
Slide 12: Q1-FY23 Facility Expansion (Cont'd)
*DRAFT VERSION* 12 Q1-FY23 FACILITY EXPANSION (CONT’D) Comparative Illustration: Facility Expansion’s Potential Impact on 12-Month Run-Rate Performance: WWW.GREENWAY.CA All references to "$" or "dollars" Current Facility: 1-Acre Indoor Greenhouse Area Facility Expansion: 4-Acre Indoor Greenhouse Are
Slide 13: Strong Competitor in Adjusted Margins (%)
13 STRONG COMPETITOR IN ADJUSTED MARGINS (%) Performance in first ever trailing six months of revenue generating operations demonstrates high potential for emergence as the industry-leader in Adjusted Gross Margins (%) & Adjusted EBITDA Margins (%)1 among peers: Adjusted Gross Margins 2 (%) Adjusted
Slide 14: Why Greenway?
14 WHY GREENWAY? Greenway’s competitive edge is driven by our focus on 4 key points of differentiation, each designed to build and deliver shareholder value by outperforming our competitors who remain deeply rooted in the “traditional cannabis business model” – characterized by unprofitable unit eco
Slide 15: Capitalization & Ownership Structure
15 CAPITALIZATION & OWNERSHIP STRUCTURE Capitalization & Ownership Structure ( Nine Months Ended December 31, 2021 ) 5.6% No. (#) As a % of 6.3% Shares Held Fully-Diluted Shares 68.9% Management & Insiders 101,587,894 68.9% Ownership (%) Public & Others (Free Float) 28,286,853 19.2% Fully-Diluted Ba
Slide 16: Q2-FY22 Financial Highlights
16 Q2-FY22 FINANCIAL HIGHLIGHTS Strong quarter results & adjusted margins validates Greenway’s lean overhead business model, reporting profitability after adjustments for non-cash and non-recurring items in our very first revenue-generating quarter period ended since going public via direct-listing
Slide 17: Experienced & Talented Management Team
17 EXPERIENCED & TALENTED MANAGEMENT TEAM JAMIE D’ALIMONTE CARL MASTRONARDI CEO, FOUNDER, CO-CHAIR PRESIDENT, FOUNDER, CO-CHAIR ✓ Chief Executive Officer of Del Fresco ✓ President of Del Fresco Group® Group® ✓ Award winning commercial grower, ✓ Over 25 years commercial with over 35 years commercial
Slide 18: Management Guidance & Outlook
18 MANAGEMENT GUIDANCE & OUTLOOK1 Q4-FY22 to H1-FY24 ✓ Expecting a strong finish to the Company’s very first fiscal year in upcoming Q4-FY22 ending March 31st, 2022 – revenue is expected to approximate similar figures to Q2-FY22 & Q3-FY22, with improvements in adjusted gross margin (%) and adjusted
Slide 19: Key Contacts
19 KEY CONTACTS DARREN PEDDLE contact@greenway.ca CFO & DIRECTOR SAM NEHMETALLAH invest@greenway.ca INVESTOR RELATIONS WWW.GREENWAY.CA CSE: GWAY
Slide 20: Appendix
CORPORATE PRESENTATION Q4 – FY`22 APPENDIX WWW.GREENWAY.CA CSE: GWAY
Slide 21: Sizeable Canadian Market Opportunity
21 SIZEABLE CANADIAN MARKET OPPORTUNITY 1 CANADIAN ADULT RECREATIONAL CANNABIS SECTOR REVENUE REPORTED BY STORE SALES RANKED BY THE 5 PROVINCES GREENWAY’S PRODUCTS ARE SOLD IN All references to "$" or "dollars" are to Canadian dollars, in millions, unless stated otherwise WWW.GREENWAY.CA CY-2019 CY-
Slide 22: Sensitivity Table (A): Near-Term Adj. EBITDA Analysis
22 SENSITIVITY TABLE (A): NEAR-TERM ADJ. EBITDA ANALYSIS Near-Term Growth Strategy Snapshot: WWW.GREENWAY.CA All references to "$" or "dollars" are to Canadian dollars, unless Facility Expansion to 4-Acres Total Indoor Greenhouse Area ( ~24,000 kg/yr1 ) CSE: GWAY stated otherwise * Sensitivity analy
Slide 23: Sensitivity Table (B): Long-Term Adj. EBITDA Analysis
23 SENSITIVITY TABLE (B): LONG-TERM ADJ. EBITDA ANALYSIS Long-Term Growth Strategy Snapshot: WWW.GREENWAY.CA All references to "$" or "dollars" are to Canadian dollars, unless Facility Expansion to 11-Acres in Total Indoor Greenhouse Area ( ~65,000 kg/yr 1 ) CSE: GWAY stated otherwise * Sensitivity
Slide 24: Reconciliation of Non-IFRS Measures
24 RECONCILIATION OF NON-IFRS MEASURES ADJUSTED EBITDA & ADJUSTED EBITDA MARGINS (%) ( TRAILING SIX MONTHS ENDED DECEMBER 31ST, 2021) TOTAL: WWW.GREENWAY.CA All references to "$" or "dollars" are to Canadian dollars, unless Q2-FY22 & Q3-FY22 CSE: GWAY stated otherwise Trailing Six Months Ended Decem
Slide 25: Reconciliation of Non-IFRS Measures (Cont'd)
25 RECONCILIATION OF NON-IFRS MEASURES (CONT’D) ALL-IN CASH COGS (PER GRAM), ADJUSTED GROSS PROFIT (%) & TOTAL CASH OVERHEAD ( TRAILING SIX MONTHS ENDED DECEMBER 31ST, 2021 ) TOTAL: WWW.GREENWAY.CA All references to "$" or "dollars" are to Canadian dollars, unless Q2-FY22 & Q3-FY22 CSE: GWAY stated
Slide 26: Additional Disclaimer
26 ADDITIONAL DISCLAIMER RISK FACTORS Whether the Company’s actual results, performance, or achievements will conform to Greenway’s expectations and predictions is subject to a number of known and unknown risks, uncertainties, assumptions and other factors. Certain of these risk factors can be found
Slide 27: End Thank You
CORPORATE PRESENTATION Q4 – FY`22 END THANK YOU WWW.GREENWAY.CA CSE: GWAY
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