Company's downstream processing system has
commenced operations and is on track to generate in excess of
$1,000,000 per month in revenue with
80%+ margins by the end of 2023.
Greenwave expects to generate positive
cashflows from operations and positive EBITDA for the year ending
December 31, 2023.
Second automotive shredder expected to
commence operations in Q3 2023, doubling Greenwave's ferrous metal
processing capacity and significantly improving the Company's top
and bottom lines.
Company strengthens balance sheet with
$15 million financing.
CHESAPEAKE, Va., Aug. 3, 2023
/PRNewswire/ -- Greenwave Technology Solutions, Inc. ("Greenwave"
or the "Company") (NASDAQ: GWAV), a leading operator of metal
recycling facilities in Virginia,
North Carolina and Cleveland, OH, is pleased to announce that it
has commenced operation of a downstream processing system at its
Kelford, NC facility. The
downstream processing system recovers millimeter-minus pieces of
metal from Greenwave's automotive shred residue or "fluff" as it is
known in the industry.
The Company has generated an average of $38,000 per business day in revenue, with margins
exceeding 80%, from metal recovered by the downstream system since
it commenced operations. As Greenwave continues to optimize the
operation of its downstream processing system, and brings a copper
extraction component online, revenues generated by its downstream
processing system could exceed $1
million per month by the end of 2023. As a result of the
downstream system commencing operations, the Company is currently
generating positive cashflows from operating activities and expects
to generate positive EBITDA for the year ending December 31, 2023.
"We are at an inflection point in Greenwave's growth trajectory.
With the downstream processing system now online and new
infrastructure set to come online in the coming weeks, we believe
Greenwave's revenue growth will accelerate going into 2024, in
addition to increasing profit margins," stated Danny Meeks, Chief Executive Officer of
Greenwave. "We are incredibly grateful for the trust and support of
Greenwave's shareholders. We are continuing to execute on our
strategic growth initiatives and look forward to reporting back on
our progress."
Second Automotive Shredder
The Company is pleased to announce it has completed the
installation of its second automotive shredder at its Carrollton facility to process cars, household
appliances and industrial products. The shredder is expected to
commence operation as soon as the electrical infrastructure is
completed. Greenwave's second automotive shredder is expected to
come online this quarter and more than double the Company's ferrous
metal processing capacity. By selling its ferrous metal as shredded
rather than unshredded, Greenwave generates approximately 33% more
revenue with profit margins in excess of 60%.
The completion of Greenwave's second automotive shredder
concludes its multi-year capex cycle, under which the Company has
invested more than $15 million in its
infrastructure and equipment over the past 18 months. This capex
cycle is expected to double its ferrous metal processing capacity
from fiscal 2022 levels and result in the Company having the
infrastructure to accretively scale to over 20 metal recycling
facilities.
Cleveland Facility
Greenwave formally opened its Cleveland metal recycling facility in
April 2023 and is currently
generating approximately $100,000 in
revenue per month. In the Company's experience, it typically takes
9 to 12 months before a newly opened facility reaches its full
volume and revenue potential – it takes time to optimize
operations, inform the community that a new metal recycling
facility is open, and for local businesses and individuals to get
in the routine of bringing their metal to the new facility.
Greenwave has been installing a shear baler at this facility,
expected to commence operations in August
2023, which will significantly increase the amount of metal
the Cleveland facility can
purchase, process, and sell. The Company's Cleveland facility also has access to the
adjoining railroad to easily transport the scrap metal it processes
to steel mills and foundries. Hundreds of local businesses and
individuals are accustomed to selling their metal scrap to
facilities in the same vicinity on a regular basis. Given these
factors, Greenwave expects the monthly revenue generated by its
Cleveland facility will ramp to
over $500,000 per month in 2024.
Strengthening the Company's Balance Sheet
On August 1, 2023, Greenwave
closed a private placement financing with certain institutional and
accredited investors for the purchase and sale of senior secured
convertible notes and warrants. Gross proceeds to the Company from
the offering were $15 million, before
deducting the placement agent's fees and other offering expenses
payable by the Company. The Company expects to use the proceeds to
fully retire all factoring advances outstanding, reduce its
equipment debt, and for general corporate purposes.
The notes mature in 24 months, are amortized in monthly cash
payments commencing in the seventh month following the close and
are convertible into shares of common stock at a fixed price of
$1.50 per share.
The Special Equities Group, a division of Dawson James
Securities Inc., acted as the sole placement agent for the
financing.
For more information on this financing, please see the Company's
Current Report on Form 8-K filed with the U.S. Securities and
Exchange Commission on August 3,
2023.
About Greenwave
Greenwave Technology Solutions,
Inc., through its wholly owned subsidiary Empire Services, Inc.
("Empire"), is a leading operator of metal recycling facilities in
Virginia and North Carolina. At these facilities, Empire
collects, classifies, and processes raw scrap metal (ferrous and
nonferrous) for recycling. Steel is one of the world's most
recycled products with the ability to be re-melted and re-cast
numerous times while offering significant economic and
environmental benefits when compared with virgin materials. For
more information, please
visit https://www.greenwavetechnologysolutions.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 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 we believe that our
plans, objectives, expectations and intentions reflected in or
suggested by the forward-looking statements are reasonable, we 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 our
control) and assumptions 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 our common
stock may fluctuate significantly. Forward-looking statements also
are affected by the risk factors described in our filings with the
U.S. Securities and Exchange Commission. Except as required by law,
we undertake 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