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Greenwave Technology Solutions Completes Recapitalization

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Greenwave Technology Solutions has completed a recapitalization, significantly improving its balance sheet by $80.5 million since February. The company has attracted $45.3 million in new capital since March and now holds a cash balance exceeding $26 million. This positions Greenwave with its strongest cash position ever, fully funding its business plan with no need for additional capital.

Greenwave is on track to surpass $40 million in revenue in 2024, driven by increased processing of steel and copper. Key strategic initiatives include initiating operations of a second shredder, expanding its ScrapApp.com platform, enhancing copper extraction technology, and exploring acquisitions and partnerships. The company is now compliant with all Nasdaq listing requirements.

Positive
  • Strengthened balance sheet by $80.5 million since February.
  • Attracted $45.3 million in new capital since March.
  • Current cash balance exceeds $26 million, the strongest in company history.
  • Record revenues expected to exceed $40 million in 2024.
  • Business plan is now fully funded with no additional capital needed.
  • Full compliance with Nasdaq listing requirements.
  • Plans to start operations of a second shredder this summer.
  • Nationwide expansion of ScrapApp.com and continued AI development.
  • Implementation of new copper extraction technology to enhance margins.
  • Evaluating accretive acquisitions and strategic partnerships.
Negative
  • Chairman and CEO exchanged approximately $17.2 million of debt into equity, potentially diluting existing shareholders.
  • Heavy reliance on new capital infusions, with $45.3 million attracted since March.

Greenwave Technology Solutions has significantly bolstered its financial position through a notable recapitalization. The company has improved its balance sheet by $80.5 million since February, which is a substantial move indicating robust financial health. With recent capital infusions of $45.3 million, Greenwave now holds over $26 million in cash. This is the strongest cash position in the company's history, eliminating the immediate need for additional capital.

From a financial perspective, this demonstrates a strategic reduction in leverage and an improved capacity to finance growth through operations. The exchange of approximately $17.2 million debt to equity by the Chairman and CEO also signals confidence in the company's future performance.

In the short term, investors might view this as a positive move, as it ensures stability and compliance with Nasdaq requirements. In the long term, the focus on enhancing margins with new technology and expanding operations suggests potential for growth and profitability. However, the success of these plans will need to be monitored, especially in terms of how effectively the new technology and expansions are executed.

Greenwave Technology Solutions aims to increase its processing volume and expand its technological capabilities, including nationwide deployment of its platform, ScrapApp.com and further AI development. The strategic focus on technology could enhance operational efficiency and market reach, potentially setting the company apart from competitors.

The anticipated start of operations for the second shredder this summer aligns with their commitment to scale production. Additionally, plans to improve the downstream processing system with new copper extraction technology could result in better margins.

For a retail investor, these developments present an exciting growth narrative. However, the execution risks associated with such expansions should be considered. The market's reception of the new technologies and the ability of the company to integrate these seamlessly into its operations will be crucial.

Company Strengthens Balance Sheet by $80.5 Million since February

Greenwave Attracts $45.3 Million in New Capital Infusions since March

Company's Business Plan Fully Funded with No Current Need for Additional Capital

CHESAPEAKE, Va., June 18, 2024 /PRNewswire/ -- Greenwave Technology Solutions, Inc. ("Greenwave" or the "Company") (Nasdaq: GWAV), an operator of metal recycling facilities in Virginia, North Carolina, and Ohio, announced today the completion of its recapitalization, significantly strengthening its balance sheet. 

Greenwave's Recent Highlights:

  • On track to generate record revenues exceeding $40 million driven by volume of steel and copper processed in 2024
     
  • Strengthened balance sheet by approximately $80.5 million since February
     
  • Attracts $45.3 million in new capital infusions since March
     
  • Current cash balance of over $26 million
     
  • Strongest cash position in Company history
     
  • Business plan is now fully funded
     
  • No current need to raise additional capital
     
  • Company is now in full compliance with all Nasdaq listing requirements
     
  • Intends to utilize additional cash flow from operations to aggressively grow and increase processing volume
     
  • Anticipates starting operations of its second shredder this summer
     
  • Plans to expand its wholly-owned technology platform, ScrapApp.com, nationwide and continue AI development
     
  • Plans to enhance margins of its downstream processing system with implementation of new copper extraction technology
     
  • Evaluating accretive acquisitions and strategic partnerships
     
  • Chairman and CEO exchanged approximately $17.2 million of debt into equity

About Greenwave
Greenwave Technology Solutions, Inc., through its wholly owned subsidiary Empire Services, Inc. ("Empire"), is an 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).

Steel is one of the world's most recycled products with the ability to be re-melted and re-cast numerous times. 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 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.

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/greenwave-technology-solutions-completes-recapitalization-302174713.html

SOURCE Greenwave Technology Solutions

FAQ

What is the impact of Greenwave's recapitalization on its balance sheet?

Greenwave's recapitalization has strengthened its balance sheet by approximately $80.5 million since February.

How much new capital has Greenwave attracted since March 2024?

Greenwave has attracted $45.3 million in new capital since March 2024.

What is Greenwave's current cash balance as of June 2024?

Greenwave's current cash balance is over $26 million as of June 2024.

Is Greenwave Technology Solutions compliant with Nasdaq listing requirements?

Yes, Greenwave is now in full compliance with all Nasdaq listing requirements.

What are Greenwave's revenue projections for 2024?

Greenwave is on track to generate record revenues exceeding $40 million in 2024.

What initiatives is Greenwave planning for its business growth?

Greenwave plans to start operations of a second shredder, expand its ScrapApp.com platform nationwide, implement new copper extraction technology, and evaluate acquisitions and partnerships.

How did the Chairman and CEO address company debt?

The Chairman and CEO exchanged approximately $17.2 million of debt into equity.

Greenwave Technology Solutions, Inc.

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