Greenway Greenhouse Expands into Cannabis CPG with Acquisition of Choice Growers Brands

Greenway Greenhouse Cannabis Corporation (CSE: GWAY) (OTCQB: GWAYF) has announced a major acquisition that positions the company as a stronger player in Canada’s cannabis consumer packaged goods (CPG) market. Through an asset purchase agreement dated December 17, 2024, Greenway has acquired all brands, intellectual property, and associated listings of Choice Growers Cannabis Inc., marking a significant move in the competitive landscape.

Strategic Acquisition of Choice Growers’ Brands

Greenway’s purchase includes the acquisition of seven popular cannabis brands: Grapefruit God Bud (also known as Grape God), The Jeffrey, Watermelon Pebbles, Pink Lemonade, Duke Nukem, Tangerine Dream, and Blackberry Cheesecake. These brands are known for their consumer recognition and appeal across Canada.

In exchange, Greenway assumes the indebtedness owed by Choice Growers and commits to a royalty payment structure tied to Net Revenue over six years. This blend of upfront and performance-based compensation highlights Greenway’s confidence in the acquired brands’ future performance.

This acquisition is notable as Greenway’s first purchase of cannabis brands from another licensed producer under Canada’s Cannabis Act. CEO Jamie D’Alimonte emphasized the strategic impact, stating, “This move allows Greenway to enhance our product portfolio in Ontario and extend our reach to new provinces, leveraging the established consumer appeal of Choice Growers’ products.”

Expanding Greenway’s Footprint in Cannabis CPG

The acquisition aligns with Greenway’s broader goals of scaling its CPG offerings in the Canadian market. The company, headquartered in Kingsville, Ontario, has built its reputation on cultivating high-quality, cost-effective greenhouse cannabis.

Greenway’s strategy is rooted in combining its cultivation expertise with Choice Growers’ branding and consumer loyalty. By integrating these brands into its operations, Greenway expects to improve profitability and introduce its products to a broader audience.

“Consumers are looking for great products at accessible prices,” D’Alimonte added. “With this acquisition, we’re better positioned to meet those expectations and bring Greenway’s cannabis to more Canadians.”

The asset purchase agreement with Choice Growers is multifaceted, including the following elements:

• Intellectual Property: Greenway acquires trademarks, goodwill, and other associated intellectual property.
• Product Portfolio: All of Choice Growers’ brands and SKUs are included.
• Royalty Agreement: Greenway will pay varying percentages of net revenue from these brands for six years.

These terms reflect a balanced approach to integrating Choice Growers’ assets into Greenway’s portfolio while maintaining a performance-based structure.

What This Means for the Canadian Cannabis Market

This acquisition signals a maturation in the Canadian cannabis market, where consolidation and brand acquisitions are becoming more common. For Greenway, this move is an opportunity to strengthen its competitive edge in the CPG sector. For consumers, it could mean increased access to diverse products at competitive prices.

By acquiring Choice Growers’ brands, Greenway is not only inheriting a portfolio but also gaining the potential to innovate within established product lines. This combination of cultivation excellence and brand recognition could prove pivotal in gaining market share.

Consumer Brands in Focus: A Snapshot

Greenway’s newly acquired brands each bring unique market positioning and appeal. Here’s a quick look at some of the notable additions:

Brand Name	Market Appeal
Grapefruit God Bud	Renowned for its flavor profile and popularity.
The Jeffrey	A cult favorite among cannabis enthusiasts.
Watermelon Pebbles	Known for its smooth taste and consumer loyalty.
Pink Lemonade	A vibrant choice for flavor-seeking users.
Duke Nukem	Offers a unique experience with a standout name.
Tangerine Dream	Celebrated for its uplifting effects and taste.
Blackberry Cheesecake	Combines rich flavor with high-quality production.

Each of these brands adds depth to Greenway’s portfolio, catering to diverse consumer preferences.

What’s Next for Greenway?

As the cannabis industry continues to evolve, Greenway’s acquisition demonstrates a commitment to long-term growth and market leadership. The company plans to integrate these brands quickly, ensuring a seamless transition for consumers and partners.

While the exact timeline for product rollout across provinces remains under wraps, Greenway’s focus on quality and affordability positions it to capture significant market interest. This acquisition also underscores the company’s ambition to be recognized not just as a cultivator but as a full-spectrum cannabis CPG leader.

Greenway Greenhouse Cannabis Corporation, with its expertise in greenhouse cultivation, now stands on the cusp of a broader consumer reach. This move, coupled with its existing strengths, positions Greenway to thrive in a competitive and growing industry.