Greenwave generated $1.23 million in positive cashflows from
operations during the six months ended June
30, 2023, a new record for the Company
Company generated $18.46 million in revenues for the six months
ended June 30, 2023, the second
highest in the Company's history
Subsequent to the close of the quarter,
Greenwave closed a private placement for proceeds of $15 million, paying off all outstanding factoring
advances and reducing its equipment financing debt by $2 million
CHESAPEAKE, Va., Aug. 15,
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 generated revenues of $9.46 and $18.45
million during the three and six months ended June 30, 2023, respectively, the third highest
quarterly revenues in its history. Further, for the six months
ended June 30, 2023, Greenwave
generated positive cashflows from operating activities of
$1.23 million – a new record for the
greatest amount of cashflows generated by the Company during a six
month period.
"Greenwave is continuing to position itself as one of the most
robust metal recycling companies on the east coast, suppling steel
and other recycled metals to some of the nation's leading steel
mills and foundries," stated Danny
Meeks, Chairman and CEO of Greenwave. "We believe there will
continue to be aggressive consolidation in this industry, as
demonstrated by yesterday's buyout offer of U.S. Steel. We continue
to execute on our strategic business objective – expanding our
operations, increasing volumes, and growing our revenues – and
believe Greenwave is one of the most unique and compelling
companies in the metal recycling industry."
Subsequent to the close of the quarter, Greenwave 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.
Recent financial results and operational highlights:
- On August 1, 2023, closed a
private placement for proceeds of $15
million, paying off all outstanding factoring advances and
reducing its equipment financing debt by $2
million. This reduced Greenwave's monthly cash repayment
obligations by more than $800,000,
significantly improving the Company's cashflows.
- Greenwave no longer has any shares of preferred stock
outstanding – in July 2023, the
Company issued shares of common stock to fully satisfy and retire
the Company's Series Z Preferred Stock, previously owned by
Greenwave's Chairman Danny
Meeks.
- Company's second automotive shredder expected to come online
this quarter – will double Greenwave's ferrous metal processing
capacity. By selling its ferrous metal as shredded rather than
unshredded, the Company generates approximately 33% more revenue
with profit margins in excess of 60%.
- Appointed Henry Sicignano III to
the Company's Board of Directors -- Mr. Sicignano currently serves
as the President of Charlie's Holdings, Inc., a publicly traded
consumer products company with sales in more than 90 countries.
Prior to this role, he served as Chief Executive Officer,
President, and Director of 22nd Century Group, Inc., a publicly
listed plant biotechnology company. Additionally, Mr. Sicignano
served as General Manager at NOCO Energy Corp, as well as Vice
President at Kittinger Furniture Company, Inc. He currently serves
on the board of directors of Kartoon Studios and served on the
board of directors of Anandia Laboratories, Inc. until it was
acquired in 2018. Mr. Sicignano holds a B.A. degree from
Harvard College and an M.B.A. degree
from Harvard University.
- Appointed Jason Adelman to the
Company's Board of Directors – Mr. Adelman brings extensive
experience in advising and investing in emerging growth companies
in the technology, media, medical device and biotech sectors. Mr.
Adelman was the lead banker in Computer Motion's merger with
Intuitive Surgical and was a member of the board of directors of
Pharmacyclics prior to its acquisition by Abbvie for over
$20 billion. Currently, Mr. Adelman
serves as a member of the board of directors of Trio-Tech
International, a global semiconductor services company, and Oblong,
Inc., a leader in next generation collaboration technologies. Prior
to founding Burnham Hill Capital Group, LLC in 2003, Mr. Adelman
served as Managing Director of Investment Banking at H.C.
Wainwright and Co., Inc. Mr. Adelman holds a B.A degree in
Economics from the University of
Pennsylvania and a J.D. degree from Cornell Law School.
For more information, please see the Company's Quarterly Report
on Form 10-Q filed on August 14,
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