Greenway’s Choice Growers Deal Left One Brand Standing

Greenway Greenhouse Cannabis Corporation took seven Choice Growers brands on December 17, 2024, in exchange for a receivable and a six-year royalty. The Kingsville, Ontario grower, listed as GWAY on the Canadian Securities Exchange and GWAYF on the OTCQB, said the purchase would add Ontario SKUs and open new provinces.

Through 2025 and the first half of 2026, Greenway’s own updates dwelt on export medical flower, retired cultivars, and record wholesale grams. A Canadian licensed-producer directory that year listed four Greenway consumer lines, and only one of the seven Choice names sat among them.

Greenway Paid for Shelf Names With a Receivable

Choice Growers Cannabis Inc. already owed Greenway money. The asset purchase agreement did not add a cash cheque for trademarks. It folded that debt into the price of the brands, SKUs, listings, goodwill, and other intellectual property, then layered on royalty payments equal to varying percentages of net revenue for six years.

Greenway never published the size of the receivable or the royalty grid. For a greenhouse company that still sells most of its flower in bulk, that structure was cheap optionality: if the names sold, Choice’s old creditors of record (Greenway included) got a trailing cut; if they did not, Greenway had not wired a headline purchase price.

Jamie D’Alimonte, Greenway’s chief executive, tied the deal to Ontario listings and to price. He also said the Choice Growers team had built brands with real consumer appeal, and that future success would depend on great product at an affordable price.

Acquiring the brands from Choice Growers will help Greenway grow the number of SKUs we have in Ontario and bring Greenway products into new provinces. The Choice Growers team have built strong brands that have demonstrated real consumer appeal. As with many cannabis brands, future success will depend on delivering great products and ensuring they reach consumers at an affordable price.

Jamie D’Alimonte, CEO, Greenway Greenhouse Cannabis Corporation, December 19, 2024

The company posted the same message the day it announced the agreement.

Greenway announces acquisition of Choice Growers consumer brands. "Our team is looking forward to bringing these brands…to enhance profitability and introduce Greenway’s quality cannabis to new consumers across Canada" D'Alimonte, CEO.https://t.co/ny7G8MO3e9

— Greenway Greenhouse (CSE:GWAY) (@Greenwayghc) December 19, 2024

What the Purchase Agreement Traded

Greenway acquired all of Choice Growers’ CPG brands under an agreement dated December 17, 2024, and announced from Kingsville on December 19, 2024. It was the first time Greenway had bought brands from another licensed producer of cannabis under the Cannabis Act.

WHAT GREENWAY TOOK AND WHAT IT GAVE

• The assets: All Choice Growers consumer packaged goods brands, SKUs, listings, trademarks, goodwill, and associated intellectual property.
• The names: Grapefruit God Bud (also called Grape God), The Jeffrey, Watermelon Pebbles, Pink Lemonade, Duke Nukem, Tangerine Dream, and Blackberry Cheesecake.
• The price: The indebtedness Choice Growers owed Greenway, plus royalties at varying percentages of net revenue for six years.
• The stated aim: More Ontario SKUs, products in new provinces, and Greenway flower inside names shoppers already knew.

Choice Growers was an Alberta producer. Company profiles put it at 47 Slater Road in Strathmore and date the firm to 2018. Greenway, by contrast, sits inside a produce greenhouse business in Essex County, Ontario, and had only just started selling its own consumer lines, MillRite and EPIC Cannabis Co, in Ontario in 2024.

D’Alimonte’s second line in the announcement was the operating thesis in one sentence: combine high quality, low cost cultivation with Choice Growers’ brand recognition. The test was whether those seven names would still be the way Greenway talked about itself once the greenhouse had somewhere else to send the same grams.

Only One Choice Name on the Shelf

Greenway already had two house brands before the Choice purchase. MillRite went out as value pre-rolls, including Lavender Haze in 2 x 0.5 g packs. EPIC Cannabis Co held dried flower in 7 g to 28 g packs. The Choice roster was supposed to multiply that shelf set and carry Greenway flower into provinces where MillRite and EPIC had less reach.

What showed up in a 2025 licensed-producer directory was narrower. The listing named four Greenway consumer lines: MillRite, EPIC Cannabis Co, Greenway bulk flower, and The Jeffrey pre-rolls. The Jeffrey, it said, had been relaunched in 2025 in three sizes. Grapefruit God Bud, Watermelon Pebbles, Pink Lemonade, Duke Nukem, Tangerine Dream, and Blackberry Cheesecake were not on that roster.

THE SEVEN CHOICE GROWERS NAMES

That does not prove the other six SKUs never shipped. Provincial boards add and drop listings without a press release. It does show which Choice name Greenway still presented as a living consumer product a year after the purchase, and it was the pre-roll line, not a seven-brand family.

Canadian wholesale prices also firmed through fiscal 2025 as flower supply tightened, which made a low-cost greenhouse more valuable as a bulk supplier than as a marketer of seven inherited names. A company that can sell dry bud by the kilogram to other licence holders does not need Grapefruit God Bud on every endcap to keep the rooms full.

Europe, Australia, and the U.K. Channel

Greenway’s January 5, 2026 year-in-review, signed by D’Alimonte, did not mention Choice Growers, The Jeffrey, or Ontario SKU counts. It described 2025 as a year of execution, foundation building, and international expansion, and it claimed a 20% increase in total revenue in the calendar year, with average selling price per gram up over 40%.

Flower from the Leamington rooms reached multiple jurisdictions in Europe and Australia in Greenway’s first full year on the international market. In the United Kingdom, the company announced a supply agreement with 4C Labs, a pathway it said was separate from its other export routes and aimed only at U.K. medical cannabis. International wholesale, the review said, would remain a focus.

By the fourth quarter of the fiscal year ended March 31, 2026, Greenway said internationally bound flower was about 50% of total flower sales. That revenue still moved through domestic companies that export into medical markets, not through Greenway-owned stores abroad. The mix shift is the point of the P&L: grams that once needed a consumer brand to reach a provincial board could leave as export-grade flower at a higher net ticket.

THE DATES THAT MOVED THE BUSINESS

1. April 2024: Greenway says its Leamington site holds CUMS-GAP and GACP certification, the papers that let later crops move into certain medical markets outside Canada, and it is already shipping MillRite and EPIC in Ontario.
2. December 17, 2024: Greenway and Choice Growers sign the asset purchase agreement for the seven brands and related intellectual property.
3. December 19, 2024: Greenway announces the purchase as its first brand buy from another licensed producer and frames it as a CPG expansion.
4. 2025: The Jeffrey pre-rolls relaunch in three sizes; Greenway also announces the 4C Labs U.K. supply agreement and starts a full year of Europe and Australia wholesale.
5. January 5, 2026: The year-in-review skips the Choice roster and points to export channels plus already-built rooms that raise production capability by more than 75%.
6. March 31, 2026: Fiscal 2026 closes with $7.4 million of net revenue, an average net selling price of $1.60 per gram, and a write-down of legacy inventory tied to cultivars Greenway is no longer producing.
7. August 31, 2026: Greenway reports the quarter ended June 30, 2026, with record grams, a $0.96 average ticket, and product in all Canadian jurisdictions plus four international markets.

Fiscal 2026 net revenue of $7.4 million sat below fiscal 2025’s $8,948,943. Average net selling price still rose 21% to $1.60 from $1.32, and gross margin before inventory impairment and fair-value adjustments improved to 29% from 18%. Adjusted EBITDA was $1.1 million, after $1.2 million in fiscal 2025. Volume came down; the grams that remained paid more, and half of fourth-quarter flower was already pointed overseas.

The Kingsville Greenhouse Still Sets the Price

Greenway is a federally licensed cultivator headquartered at 1478 Seacliff Drive in Kingsville. Mother plants and clones sit in a licensed indoor nursery there. Flowering and processing run in Leamington, in 167,000 square feet of licensed greenhouse (excluding processing and office space) that Health Canada approved on February 16, 2023, up from 41,750 square feet. Estimated annual capacity moved from 6,000 kilograms to 24,000 kilograms.

Those rooms sit inside a produce greenhouse that runs about 1,800,000 square feet, inclusive of Greenway’s block. The parent is Sunrite Greenhouses Ltd. D’Alimonte and president Carl Mastronardi come out of that produce business, including DelFrescoPure, which has long grown vegetables at greenhouse scale in the same county. Cannabis here is a crop plan inside a vegetable machine, not a downtown brand studio.

In 2025 Greenway said it kept 2.5 acres of cultivation active and had already built extra space that lifts total production capability by more than 75% without a new capital spike. That is the inventory behind any Choice SKU and behind any export bag. Cash cost per gram sold was $0.83 for the year ended March 31, 2025, and $0.69 in the quarter ended June 30, 2026. A royalty on consumer net revenue only fires if those grams are packed under a Choice name and sold as CPG. Packed as wholesale flower, the same cost base feeds a different invoice.

Related-party plumbing is heavy. A CSE filing for the period ended December 31, 2025, showed $4,900,000 of subordinated credit owed to Sunrite at 5.50%, plus millions more in related-party payables. Excluding amounts due to related parties, working capital stayed positive. The people who already finance the rooms are the same people who can decide whether a Duke Nukem jar is worth a packing line.

Record Grams Came With a 12% Margin

For the three months ended June 30, 2026, Greenway posted net revenue of $2,232,700, up 38% from $1,621,062 a year earlier, and record 2.33 million grams sold, 8% above the prior quarterly high. Cash cost per gram sold fell 30% to $0.69. Average net sales were $0.96 per gram, or $1.30 per gram excluding inventory from discontinued cultivars that had already been written down to net realizable value at March 31, 2026.

Gross profit before fair-value adjustments was $263,438, a 12% margin, squeezed by that legacy mix. Operating expenses were $632,571. The operating loss was $353,706, the net loss $659,893. Adjusted EBITDA stayed positive at $47,900, and operations provided $36,778 of cash after using $865,538 in the year-earlier quarter. Cash on June 30, 2026, was $1,133,209. Working capital excluding related-party amounts was $4,537,711. Greenway said its product was in all Canadian jurisdictions and in four international markets.

Q1 FISCAL 2027 SNAPSHOT

• Net revenue: $2,232,700, up 38% from $1,621,062 in the quarter ended June 30, 2025.
• Volume: 2.33 million grams or grams equivalent, 8% above the previous quarterly record.
• Cash cost: $0.69 per gram sold, 30% lower than a year earlier.
• Ticket: $0.96 per gram on all sales, and $1.30 per gram excluding written-down discontinued cultivars.

D’Alimonte called the quarter a product-mix transition that still produced revenue growth and operating cash. Mastronardi put the 2.33 million grams on the cultivation, processing, and fulfillment teams and on the $0.69 cash cost. Neither statement named Choice Growers. Management said it had retired certain legacy cultivars to aim production at markets and customers with the strongest long-term value, which is how a greenhouse talks when export medical flower is paying and old indoor-era names are not.

REVENUE AND PRICE ACROSS THREE PERIODS

The December 2024 agreement is still in force on paper: seven names, a cancelled receivable, and royalties for six years on whatever net revenue those brands actually ring. The Jeffrey pre-rolls are the Choice line that reappeared in Greenway’s consumer set. The rooms that were supposed to fill Grapefruit God Bud and Pink Lemonade jars spent the next two reporting years filling export orders and clearing retired cultivars at a discount.

Frequently Asked Questions

When Did Greenway Buy the Choice Growers Brands?

The asset purchase agreement is dated December 17, 2024, and Greenway announced it from Kingsville on December 19, 2024, at 16:30 ET. Common shares trade as GWAY on the Canadian Securities Exchange and as GWAYF on the OTCQB Venture Market, and the company’s chief administrative officer, Jacob De Jong, was listed as the press contact on the announcement.

Did Greenway Disclose the Royalty Rate or the Debt Amount?

No. The announcement said only that royalties would equal varying percentages of net revenue, as defined in the purchase agreement, over six years, and it did not state the dollar amount Choice Growers owed Greenway. Anyone modelling the earn-out is working without the grid.

Where Was Choice Growers Based?

Choice Growers Cannabis Inc. is listed at 47 Slater Road, Strathmore, Alberta T1P 1J3, and company profiles date the business to 2018. That Alberta base is why D’Alimonte could describe the purchase as a way to put Greenway flower into provinces beyond Ontario, even though the growing rooms stayed in Essex County.

What Consumer Brands Did Greenway Already Sell?

MillRite and EPIC Cannabis Co were already in Ontario in 2024, before the Choice names transferred. MillRite is a value pre-roll line, including Lavender Haze in 2 x 0.5 g packs, and EPIC holds dried flower in 7 g to 28 g formats, so the Choice roster was an add-on to two house brands rather than Greenway’s first trip to a provincial board.

Who Finances the Greenhouse Greenway Uses?

Greenway is a majority-owned subsidiary of Sunrite Greenhouses Ltd., which also holds a $4,900,000 subordinated credit facility at 5.50% secured against Greenway’s assets. The flowering block sits inside a produce greenhouse of about 1,800,000 square feet, so the people who already fund the glass are the same related party on the working-capital line.

Disclaimer: This article is news reporting and analysis of a completed brand purchase and of later company results. It is informational only and is not investment advice, a solicitation to buy or sell GWAY or GWAYF shares, or advice on cannabis licensing or tax. Readers should consult a registered financial adviser, and a cannabis-licensing lawyer where a licence or listing decision is involved, before acting on any figure or corporate event in this piece. Revenue, costs, listings, royalty terms and licence statuses come from company statements and public filings as of the dates named above and can change.