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Greenwave Technology Solutions Issues 2022 Chairman’s Letter
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Fully funded after closing a $37.7 million offering, Greenwave intends to rapidly expand its footprint of metal recycling facilities, aggressively grow its revenues, and create significant shareholder value this year
NORFOLK, Va.--(BUSINESS WIRE)--
Greenwave Technology Solutions, Inc. ("Greenwave" or the "Company") (OTCPink:MSRT) is pleased to issue the following letter to shareholders from Greenwave Chairman and Chief Executive Officer, Mr. Danny Meeks:
Dear Greenwave Shareholders,
I’m pleased to report that Empire Services, Inc., which Greenwave acquired last fall, generated more than $27 million in revenue during the year ended December 31, 2021, exceeding the $24 million annual revenue goal we set in September 2021. We aim to further accelerate our revenue growth this year by rapidly expanding our footprint of metal recycling facilities. Our 11th location opened in Virginia Beach in mid-October 2021 and is just now starting to meaningfully contribute to our overall metal volumes and revenues – and we expect by that later this year, our Virginia Beach location will have grown into one of our busiest and most profitable locations. By the end of January, we expect to open our 12th location in Fairmont, NC, for which we’ve already secured the licenses and permits, and is the first of many scrap metal facilities that we plan to open or acquire this year.
Earlier this week, BlackRock, Inc. disclosed it had accumulated 5.3% of the outstanding ordinary shares of Sims Metal Management[1], the parent company of our largest customer, following BlackRock CEO Larry Fink’s assertion that the next 1,000 companies that will reach a billion-dollar valuation will be focused on green hydrogen, green agriculture, green steel, and green cement[2].
The scrap metal industry is ripe for a roll-up as it will likely result in a significant margin expansion as we enter into what Goldman Sachs called a “commodities supercycle”[3]. As a public company with 31,000 shareholders, Greenwave is positioned to move quickly and aggressively to roll-up independent, profitable metal recycling facilities as a pure play on green steel.
We are in the final stages of preparing our formal application to uplist Greenwave to the NASDAQ or NYSE, as we believe a listing on a national exchange would result in a significant increase in visibility, liquidity, and institutional interest for our stock. We have had discussions with many potential board members, all experts in their respective fields, and we expect to begin expanding our board in the coming weeks with seasoned, respected leaders who will help take our company to the next level. Further, we believe Greenwave can meet the listing standards of a national exchange without any additional capital raises.
In a January 11, 2022 Research Report, “Metals Watch: Aligned for the next leg higher,” Goldman Sachs raised its price targets for aluminum, copper, and zinc, driven by depleted inventories, robust demand, and inflationary pressures. In this context, we believe now is the optimal time for a roll-up of metal of recycling facilities. Demand for prime metallic scrap is expected to increase by approximately 41% from current levels to 29.6 million gross tons by fiscal year 2025[4]. At the same time, the supply of prime steel scrap has been shrinking consistently for more than 50 years, according to a Steel Research Associates, LLC Scrap Model[4]. Greenwave’s management believes that this supply/demand imbalance will continue to cause rising prices for scrap metal for at least the next 5-7 years.
It is also important to note the significant environmental benefits of recycling steel. Unlike plastics and other materials, steel is able to be melted and re-cast countless times as it has no structural memory(3). Recycling steel, rather than using virgin materials, cuts CO2 emissions by approximately 75% while utilizing approximately 70% less energy[5]. Currently, two out of every three tons of steel produced comes from recycling, up from one out of every ten tons in 1980[6].
Greenwave’s management has set aggressive expansion and revenue goals for the coming year as we begin rolling-up independent, profitable metal recycling facilities. With a significant supply/demand imbalance for recycled steel expected to continue through at least 2025[4], we believe prices for metals will continue to remain strong for the foreseeable future – especially with many projects under the recently passed Infrastructure Investment and Jobs Act beginning construction. I am incredibly grateful to both our long-term and new shareholders for their continued trust in my leadership as we look to maximize shareholder value and take Greenwave to the next level.
Regards,
Danny Meeks Chairman and Chief Executive Officer,
Greenwave Technology Solutions, Inc.
Greenwave Technology Solutions, Inc., through its wholly owned subsidiary Empire Services, Inc. (“Empire”), is a leading operator of 11 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 recast 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 name change, revenue growth, opening of additional locations, and a listing on a senior exchange. 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.
