Greenwave Technology Solutions Successfully Restructures Debt to Facilitate Continued Growth

Rhea-AI Summary

Greenwave Technology Solutions, Inc. (GWAV) successfully restructured its senior secured debt, waiving cash covenants and amortization payments. The company's second automotive shredder is expected to double ferrous metal processing capacity, leading to a 30% revenue increase. Record revenues are anticipated in 2024, with plans to aggressively grow operations.

Financial Analyst

The restructuring of Greenwave Technology Solutions' senior secured debt is a significant development. The waiver of quarterly-cash covenants and amortization payments provides the company with financial flexibility. This move is indicative of the lenders' confidence in Greenwave's business model and future prospects. The ability to defer cash payments can help the company preserve liquidity, which is essential for operational needs and pursuing growth strategies.

From a financial perspective, the anticipated increase in revenue from the new shredder is noteworthy. If the additional shredder leads to a 30% increase in revenue, this could significantly impact the bottom line, assuming costs do not proportionally increase. Investors should monitor the actual performance post-implementation to assess the accuracy of these projections. Additionally, the company's focus on scaling ferrous metal volume and enhancing copper extraction efficiency could lead to improved recovery yields, which might translate into better cashflows and profitability.

Market Research Analyst

The metal recycling industry is poised for growth, driven by global trends favoring sustainable materials management and resource efficiency. Greenwave's investment in a second automotive shredder positions the company to capitalize on these trends by doubling its ferrous metal processing capacity. This expansion could enable Greenwave to meet increasing demand for recycled metals while improving its competitive stance in the market.

However, the success of such operational expansions depends on market conditions, including scrap metal prices and demand. While the company expects to generate record revenues, external factors such as economic downturns or shifts in the recycling industry could affect these outcomes. It is important for stakeholders to consider both the company's internal growth initiatives and external market forces when evaluating its future performance.

Environmental Economist

The environmental implications of Greenwave's expansion are also significant. By increasing its capacity to recycle ferrous metals, the company contributes to reducing the environmental footprint associated with metal production. Recycling metals typically requires less energy and generates fewer greenhouse gas emissions compared to extracting and processing virgin materials. This not only benefits the environment but also aligns with increasing regulatory pressures and consumer demand for sustainable practices.

Moreover, the potential financial benefits from enhanced copper recovery could incentivize further investments in environmentally friendly technologies. This could have a ripple effect, encouraging other companies in the industry to adopt similar practices, thereby amplifying the environmental benefits. Stakeholders should consider the long-term implications of such investments, as they may lead to both ecological and economic advantages.

Company Not Required to Make Cash Payments on Senior Secured Notes until July 31, 2024

Quarterly-Cash Covenants Waived until September 30, 2024

Greenwave's Second American Pulverizer 60x85 Shredder Expected to Double Company's Ferrous Metal Processing Capacity in the Coming Weeks

Company Intends to Utilize Additional Cashflow to Aggressively Grow Operations

CHESAPEAKE, Va., March 19, 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 that it has successfully restructured its senior secured debt to facilitate growth. The senior secured note holders have waived the quarterly-cash covenants until September 30, 2024, as well as monthly amortization payments until July 31, 2024.

Greenwave recently 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.

The Company'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 expects to generate record revenues based upon a record volume of steel processed thus far in 2024. The Company expects to utilize the additional cashflows from restructuring its debt to aggressively grow its operations.

"We appreciate the continued support of our shareholders and debtholders at this inflection point in Greenwave's growth," stated Greenwave CEO Danny Meeks. "Our second shredder provides  the infrastructure for the Company to significantly scale our ferrous metal volume and revenues. We are simultaneously working to bring our copper extraction unit online as quickly as possible to further enhance the recovery yields – and cashflows – of our downstream recovery system. We are looking forward to an exciting next several months and reporting back on our progress."

For more information, please see the Company's Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission on March 18, 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

What debt restructuring measures has Greenwave Technology Solutions, Inc. (GWAV) undertaken?

Greenwave has successfully restructured its senior secured debt, waiving quarterly-cash covenants until September 30, 2024, and monthly amortization payments until July 31, 2024.

How will the second automotive shredder impact Greenwave's operations?

The second automotive shredder is expected to double Greenwave's ferrous metal processing capacity, leading to a 30% increase in revenue with significant margins.

What are Greenwave's revenue expectations for 2024?

Greenwave expects to generate record revenues in 2024 based on a record volume of steel processed, utilizing additional cashflows from debt restructuring to grow operations.

What are the CEO's comments regarding Greenwave's growth and future plans?

CEO Danny Meeks expressed gratitude for shareholder and debtholder support, highlighting the potential for significant scaling of ferrous metal volume and revenues. Plans include bringing the copper extraction unit online to enhance recovery yields and cashflows.

Where can more information about Greenwave Technology Solutions, Inc. (GWAV) be found?

For more information, refer to the Company's Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission on March 18, 2024.