Greenwave Technology Solutions Issues Chairman’s Letter
Company plans to aggressively roll-up metal recycling facilities, expand its Board of Directors, and apply for a listing on the NASDAQ or NYSE
Virginia Beach, VA
October 18, 2021
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 excited to share that over the coming months, Greenwave expects to rapidly expand its footprint of locations and increase its metal recycling volume, which we believe will result in significant revenue growth. This week, we are opening our 11th metal recycling facility in Virginia Beach, the largest city in Virginia with a population of 450,000 people, where it is one of only two licensed scrap yards. With an optimal location near significant industrial and construction activity, directly on a major thoroughfare, we believe our Virginia Beach facility will likely be one of our busiest locations both in terms of volume of metals processed and revenue generated.
Since the closing of the Empire merger two weeks ago, we’ve had discussions with owners of scrap yards both in our immediate region and along the eastern seaboard of the United States. Many recognize the industry is ripe for a roll-up as it would likely result in a significant margin expansion while we enter into a commodities supercycle, according to Goldman Sachs. We believe it is only a matter of time before there’s a roll-up of independent, profitable metal recycling facilities and as a public company with 31,000 shareholders, Greenwave is in a position to move quickly and aggressively.
Greenwave’s team has been working tirelessly to move all our operations onto a cloud-based ERP system while at the same time, establishing the systems and controls that will facilitate Empire’s continued growth. We have also re-purposed MassRoots’ legacy technology to communicate directly with our customers and display metal prices at all of our yards online, which has already increased our business from existing customers. I would like to thank all our team members for their dedication, long days, and hard-work through the process of going public, I believe it’s going to be a life-changing experience for all of us.
Empire is in the final stages of preparing its formal application to uplist 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.
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(2). 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(2). 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(4). Currently, two out of every three tons of steel produced comes from recycling, up from one out of every ten tons in 1980(3). At Greenwave, we believe our generation should strive to leave our planet in a better condition than we found it for our children and grandchildren and we are proud of our contribution to helping conserve energy and improve our environment.
This is a fresh start for Greenwave and under my leadership, we will be relentlessly focused on growing our revenues and improving our bottom line. With a significant supply/demand imbalance for recycled steel expected to continue through at least 2025(2), we believe prices for metals will continue to remain strong for the foreseeable future – especially if the U.S. federal government enacts the Infrastructure Investment and Jobs Act. I am incredibly grateful for your continued support as shareholders of Greenwave and look forward to reporting back to you on our progress.
Chairman and Chief Executive Officer,
Greenwave Technology Solutions, Inc.
MassRoots, Inc., which is changing its name to Greenwave Technology Solutions, Inc., through its wholly owned subsidiary Empire Services, Inc. (“Empire”), is a leading operator of 10 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.
The company has announced that it intends to change its corporate legal name from MassRoots, Inc. to Greenwave Technology Solutions, Inc. Although the legal name of the company will continue to be MassRoots, Inc. until the name change process has been completed, for marketing and branding purposes the company has begun referring to itself as Greenwave.
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.