Greenwave Technology Solutions Announces $4 Million Offering Priced at Market
Rhea-AI Summary
Greenwave Technology Solutions (NASDAQ: GWAV) has announced a $4 million registered direct offering and concurrent private placement priced at market. The company will sell 7,544,323 shares of common stock at $0.5302 per share, with accompanying warrants to purchase an equal number of shares at the same price.
The warrants will expire five years from stockholder approval date. The offering, expected to close around January 14, 2025, includes provisions prohibiting participating investors from short selling the company's stock while holding warrants. This financing aims to accelerate the recovery and monetization of rare earth metals, with the company positioning itself in the renewable energy and advanced technology materials market.
Positive
- Secured $4 million in new financing
- Anti-short selling provisions protect against downward stock pressure
- Warrants priced at market value ($0.5302) with no discount
Negative
- Share dilution through issuance of 7,544,323 new shares
- Additional potential dilution from warrant exercise
- Financing at relatively low share price of $0.5302
News Market Reaction – GWAV
On the day this news was published, GWAV declined 28.84%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Company to Accelerate Recovery and Monetization of Rare Earth Metals
Transaction Prohibits Short Selling, Optimizes Capital Structure, and Aligns Investors with Long-Term Growth
The agreement involves the sale of 7,544,323 shares of common stock at a price of
Some other key highlights of the offering include:
- This financing underscores investor confidence in Greenwave's growth potential and strengthens the Company's position in the rapidly expanding rare earth metals market—crucial for renewable energy and advanced technology applications.
- Participating investors agreed to a prohibition on shorting the Company's common stock while such investors own warrants, ensuring alignment with Greenwave's long-term vision and reducing downward stock pressure.
- The transaction includes a forward-looking call feature, enabling Greenwave to redeem such warrants for cash proceeds of up to an additional
$4 million
Dawson James Securities Inc. is acting as the sole placement agent for this transaction.
The shares are being offered pursuant to a shelf registration statement on Form S-3, effective since April 28, 2023. The warrants and the shares of common stock underlying the warrants were not offered under the registration statement but through an exemption from registration under the Securities Act of 1933. The Company has agreed to file a registration statement under the Securities Act of 1933, as amended (the "Act"), with the Securities and Exchange Commission (the "SEC"), covering the resale of the shares of common stock issuable upon exercise of the warrants within 20 days following the closing of the offering.
This press release shall not constitute an offer to sell or the solicitation of any offer to buy the securities discussed herein, nor shall there be any offer, solicitation, or sale of the securities in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
For more details, refer to Greenwave Technology Solutions' Form 8-K filed with the SEC on January 13, 2025.
Advancing Rare Earth Recovery Amid Global Supply Chain Challenges
Greenwave is fast-tracking initiatives to recover and monetize rare earth metals as global supply chain risks escalate, driven by
Leveraging advanced technologies, Greenwave recovers rare earth elements from high-value sources such as lithium batteries, solar cells, LED manufacturing scrap, and electronic components. The Company is actively evaluating the development of a dedicated rare earth recovery facility to meet growing domestic demand.
Strategically positioned near Naval Station Norfolk and the Port of
About Greenwave Technology Solutions, Inc.
Greenwave Technology Solutions, Inc. (Nasdaq: GWAV) operates 13 metal recycling facilities supplying leading steel mills and industrial partners with sustainably sourced metals. Headquartered in
For detailed financials and updates, 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 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), 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