Greenwave Secures New Customers to Increase Margins
January 26, 2023
Greenwave Technology Solutions, Inc. ("Greenwave" or the "Company") (NASDAQ: GWAV), a leading operator of metal recycling facilities in Virginia and North Carolina, is pleased to announce that over the past several months, it has established relationships with leading international and domestic steel mills to secure the best possible prices for each type of metal it processes.
During the year ended December 31, 2021, Greenwave received 83% of its revenues from one customer. As a result of the efforts described above, the Company’s main customer accounted for 48% of its revenue during the three months ended September 30, 2022. Further, at the Company’s Chesapeake facility, Greenwave has been optimizing its processes and procedures for loading containers for shipments both international and domestic.
Over the past several months, Greenwave has invested significant resources into its infrastructure and systems to improve its margins, including:
Installing a second automotive shredder at its Carrollton facility which is expected come online during Q1 2023 and double the Company’s processing capacity while significantly expanding the margins Greenwave realizes on its ferrous products;
Utilizing technology to purchase cars directly from customers rather than brokers and auctions;
Expanding its fleet of trucks to efficiently transport the significant volume of metal Greenwave processes;
Installing a downstream processing system at its Kelford facility which is expected to come online during Q1 2023 to process the auto residue produced by its shredder; and
Upgrading the power infrastructure at the Company’s Portsmouth facility to enable heavier machinery to process and upgrade its non-ferrous products.
Further, Greenwave is pleased to announce that an institutional investor has converted the entirety of its shares of Series Z Preferred Stock. Mr. Danny Meeks, Chairman and Chief Executive Officer of Greenwave, is the sole holder of the remaining shares of Series Z Preferred Stock, the only class of preferred stock outstanding. All of the price protection provisions in Greenwave’s equity instruments expired upon the Company’s uplisting to Nasdaq on July 22, 2022.
Greenwave Technology Solutions, Inc., through its wholly owned subsidiary Empire Services, Inc. (“Empire”), is a leading operator of 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 re-cast numerous times while offering significant economic and environmental benefits when compared with virgin materials. For more information, please visit https://www.greenwavetechnologysolutions.com/. Check us out on all social media platforms: https://twitter.com/greenwavegwav, https://www.instagram.com/greenwavegwav and https://www.youtube.com/@greenwavetechnologysolutions.
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, and expected completion of its second shredder and downstream processing system. 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.