Greenwave Technology Solutions' Second Shredder Scheduled to Be Connected to Power Grid by April 9, 2024

Rhea-AI Summary

Greenwave Technology Solutions, Inc. is set to double its ferrous metal processing capacity with the addition of a second automotive shredder, leading to a projected 30% increase in revenue and significant margins on steel volume. The company aims to achieve record revenues in 2024.

Market Research Analyst

The expansion of Greenwave Technology Solutions' processing capacity is a strategic move that can potentially strengthen the company's market position in the metal recycling industry. Doubling the ferrous metal processing capacity indicates a response to increasing demand, which could be driven by factors such as infrastructure development, manufacturing growth, or changes in scrap metal supply dynamics. The anticipated 30% revenue increase from shredding steel, compared to selling it unshredded, suggests a shift towards higher value-added services, which typically command better margins.

The key takeaway for stakeholders is the expected positive impact on the company's financial performance. However, the actual benefit will depend on market conditions, including steel prices and the cost of operations. Investors should monitor commodity price trends and the company's operational efficiency post-expansion to gauge the true impact on profitability.

Financial Analyst

Greenwave's announcement of operational commencement for its second automotive shredder by April 2024 is a forward-looking statement that could influence the company's stock performance. The market often reacts to such capacity expansions, especially when they are projected to significantly boost revenues and margins. This development should be attractive to investors looking for growth in the industrial sector.

However, it's essential to consider the capital expenditure involved and how it's financed, as it can affect the company's debt levels and cash flow. The long-term benefits of increased capacity must outweigh the costs for the move to be considered financially sound. Stakeholders should also be aware of the execution risks associated with scaling operations and the potential for unforeseen operational challenges.

Environmental Economist

The expansion of recycling capacity by Greenwave reflects broader economic and environmental trends. The metal recycling industry plays a crucial role in sustainable development by reducing the demand for virgin resources, lowering greenhouse gas emissions and conserving energy. An increase in processing capacity could further these benefits, aligning with global sustainability goals.

From an economic perspective, this move could be seen as capitalizing on policies and consumer preferences that increasingly favor environmentally responsible practices. In the long term, companies like Greenwave could benefit from potential government incentives and a stronger market position as industries transition to more sustainable models. The environmental impact and the company's contribution to a circular economy should be factored into the overall analysis of its business prospects.

Second shredder is expected to double Greenwave's ferrous metal processing capacity

CHESAPEAKE, Va., Feb. 15, 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 it received notification from Dominion Energy that its second automotive shredder is scheduled to be connected to the power grid no later than April 9, 2024 and will commence operations shortly thereafter. The Company's second automotive shredder is expected to double Greenwave's ferrous metal processing capacity.

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 which we currently sell unshredded, we anticipate that we will be able to generate approximately 30% more revenue with significant margins on that steel volume.

Greenwave is on track to generate record revenues with record volume of steel processed in 2024.

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 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

When is Greenwave's second automotive shredder expected to be connected to the power grid?

Greenwave's second automotive shredder is scheduled to be connected to the power grid no later than April 9, 2024.

What is the expected impact of the second automotive shredder on Greenwave's ferrous metal processing capacity?

The second automotive shredder is expected to double Greenwave's ferrous metal processing capacity.

What is the make and model of Greenwave's existing automotive shredder?

Greenwave's existing automotive shredder is an American Pulverizer 60x85.

How much revenue increase is Greenwave anticipating with the addition of the second automotive shredder?

Greenwave anticipates generating approximately 30% more revenue with significant margins on the steel volume by shredding the steel which is currently sold unshredded.

What is Greenwave's goal for 2024 in terms of revenue and steel processing volume?

Greenwave aims to generate record revenues with a record volume of steel processed in 2024.