The second shredder is expected to boost
annual revenues by approximately $4.8
million, with significant increase to gross
profit
Second shredder on track to be connected to
power grid by March 29, 2024 and
commence operations shortly thereafter, doubling Greenwave's annual
shredded ferrous output
Greenwave is now one of the largest
independent operators of metal recycling facilities on the East
Coast
CHESAPEAKE, Va., March 25, 2024 /PRNewswire/ -- Greenwave
Technology Solutions, Inc. ("Greenwave" or the "Company") (Nasdaq:
GWAV), a leading operator of metal recycling facilities in
Virginia, North Carolina, and Ohio, today announced that Dominion Energy is
currently in the process of connecting its second automotive
shredder to the power grid which is expected to be completed by
March 29, 2024. The Company's second
automotive shredder is expected to commence operations shortly
thereafter and double Greenwave's annual shredded ferrous
output.
Greenwave's existing automotive shredder – an American
Pulverizer 60x85 – is the same make and model as its second one,
providing the Company expertise in its operation and maintenance.
By shredding the steel Greenwave currently sells unshredded, the
Company anticipates that it will be able to generate approximately
25-30% more revenue with significant margins on that steel
volume.
In October 2023, Sims Metal
Management acquired Baltimore Scrap Corp., which operated 17 metal
recycling facilities and four shredders, for consideration of
$220
million(1). Similar to most industries,
there has been a tremendous amount of consolidation in scrap metal
companies during the past several years. Greenwave is now one of
the largest independent chains of scrap yards remaining on the East
Coast, with significant market share in its key markets. Further,
the Company believes there is significant value in its licenses,
municipal and corporate contracts garnered over its 20-year
operating history, robust infrastructure, and team of seasoned
experts.
"Greenwave's second shredder provides the infrastructure for us
to expand our footprint of metal recycling facilities up from 13
currently – significantly growing Greenwave's revenues, margins,
and free cashflow," stated Greenwave CEO Danny Meeks. "We believe the market is
significantly undervaluing Greenwave and firmly believe that by
continuing our hub-and-spoke strategy of shredder hubs with feeder
yards, we will become an increasingly attractive acquisition target
of the major scrap metal conglomerates."
Greenwave is on track to grow it revenues and volume of steel
processed from 2023 levels in 2024.
- Sims Limited's Semi-Annual Report, Note 10 (Page 28)
https://ir.miraqle.com/DownloadFile.axd?file=/Report/ComNews/20240220/02774261.pdf
About Greenwave
Greenwave Technology Solutions, Inc., through its wholly owned
subsidiary Empire Services, Inc. ("Empire"), is a leading operator
of 13 metal recycling facilities in Virginia, North
Carolina, and Ohio. The Company's
recycling facilities collect, classify, and process raw scrap metal
(ferrous and nonferrous) and implement several unique technologies
to increase metal processing volumes and
operating efficiencies, including a downstream recovery
system and cloud-based ERP system.
Steel is one of the world's most recycled products with the
ability to be re-melted and re-cast numerous times. Recycling steel
provides key environmental benefits over virgin metals, including
reduced energy use, lower CO2 emissions, lower waste, and
conserving natural resources. Greenwave's customers include large
corporations, industrial manufacturers, retail customers, and
government organizations. The Company plans to aggressively expand
its footprint of locations by acquiring independent, profitable
scrap yards in the coming months. For more information, please
visit www.GWAV.com.
Forward-looking Statements
This press release contains certain forward-looking
statements within the meaning of the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. These include,
without limitation, statements about its revenue growth,
opening of additional locations, margin expansion, expected
connection of the second shredder to the power
grid, and cashflow projections. These statements are
identified by the use of the words "could," "believe,"
"anticipate," "intend," "estimate," "expect," "may," "continue,"
"predict," "potential," "project" and similar expressions that are
intended to identify forward-looking statements. All
forward-looking statements speak only as of the date of this press
release. You should not place undue reliance on these
forward-looking statements. Although the Company believes that its
plans, objectives, expectations and intentions reflected in or
suggested by the forward-looking statements are reasonable, the
Company can give no assurance that these plans, objectives,
expectations or intentions will be achieved. Forward-looking
statements involve significant risks and uncertainties (some of
which are beyond the Company's control, such as weather in
Carrollton, VA), assumptions and
other factors that could cause actual results to differ materially
from historical experience and present expectations or projections.
Actual results may differ materially from those in the
forward-looking statements and the trading price for the Company's
common stock may fluctuate significantly. Forward-looking
statements also are affected by the risk factors described in the
Company's filings with the SEC. Except as required by law, the
Company undertakes no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise, after the date on which the statements
are made or to reflect the occurrence of unanticipated
events.
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SOURCE Greenwave Technology Solutions