Greenway Greenhouse Cannabis Corporation has filed a prospectus for a listing on the Canadian Securities Exchange. The company is majority-owned by Sunrite Greenhouses Ltd., an established cultivator of greenhouse-grown produce within the Del Fresco Group of companies. Greenway currently operates in a hybrid greenhouse, located in Leamington, Ontario, and in an indoor nursery, located in Kingsville, Ontario.
According to the filing, Greenhouse has no revenue to date but is licensed to grow and sell dried cannabis. The first crop was fully harvested in May 2021. It intends to sell the strains called Sun County Kush and Lemon Pound Cake. Greenway says it has over 200 strains within its genetic portfolio and plans to be a wholesaler. The company plans to complete five crop cycles per fiscal year. Greenway has $4.1 million in working capital according to the prospectus.
“Greenway represents the next step in a lifetime of agricultural experience and innovation. The Del Fresco Group of companies have been bringing fresh produce to consumers across North America for years and we’re excited to leverage our greenhouse expertise with this legal crop of cannabis,” says Jamie D’Alimonte, CEO and Co-Chair of Greenway. “Combined with some of the most skilled cannabis specialists in the field, Greenway is prepared to bring quality greenhouse cannabis to the Canadian market.”
The company’s leadership is not diverse and is only white males. The gentlemen also hold the same positions in the produce company Del Fresco Group, which could create a conflict of interest according to the company filing.
The filing stated, “As of the fiscal year ended March 31, 2021, there is no revenue from dry bud cannabis or clones. The first batches of dry bud cannabis were approximately 50% through their production cycles at such time. In the past three fiscal years, the only source of revenue has been rental income from the Acquired Property, and reserves for potential additional production capacity. Rental income will be an insignificant source of revenue in the future. At present, the Corporation does not anticipate engaging in any business activities outside of Canada. The corporation uses approximately 4% of the Leamington facility for product development of new cannabis strains, retrieved from their significant seed bank. The footprint for product development varies by season and the judgment of Management. Research and development of new strains and growing practices is completed in-house drawing on the significant knowledge of the Corporation’s founders.”