Company on track to generate record revenues
in FY 2024
Second shredder will be fully operational soon
and is expected to double Greenwave's ferrous metal processing
capacity
CHESAPEAKE, Va., Feb. 13,
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
released the following shareholder update:
Dear Greenwave Shareholders,
We are pleased to report that Greenwave is off to strong start
in 2024 and is on track to generate record revenues this year. A
few recent developments we'd like to highlight:
- Both our Virginia Beach and
Cleveland yards continue to post
impressive growth in terms of their revenues, volumes, and profits
– we expect they will soon become two of our top performing
locations.
- We recently commenced operations of a metal baler, wire
stripper, and three sheers at our non-ferrous processing facility,
enabling us to generate more revenues with higher margins on our
aluminum and copper products.
- Greenwave generated more than $200,000 in revenue from cars purchased through
our wholly-owned subsidiary, Scrap App, Inc. ("Scrap App"), during
the first 130 days since it launched, as it continues to capture
market share for end-of-life motor vehicles. Scrap App is currently
available in the Hampton Roads and
Cleveland markets. We intend to
expand Scrap App to other strategic markets in the near
future.
- In the coming days, we expect Virginia
Dominion Power will inform of us of the final date on which
our second automotive shredder will be connected to the power grid
and can commence operations. Our existing automotive shredder is
the same make and model – an American Pulverizer 60x85 – providing
us expertise in its operation and maintenance. Given this
experience, we expect our second shredder will be fully operational
shortly after being connected to the power grid and is expected to
double Greenwave's ferrous metal processing capacity. 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.
In August 2023, Baltimore Scrap
Corp. was acquired for $177 million
plus working capital and other adjustments(1). While
Baltimore Scrap Corp. is larger than Greenwave – it operates 17
yards, four shredders, and processes 600,000 metric tons of scrap
each year – we believe this acquisition supports management's view
that Greenwave's expansion strategy has the potential to create
significant value for its shareholders.
Once our second shredder commences operations, we believe
Greenwave will have the requisite infrastructure and cashflows to
expand it footprint of metal recycling facilities. As a technology
platform, Scrap App has the ability to scale to multiple new
markets with minimal capital investment – we do not have to open a
new facility, purchase additional equipment, or hire a team of
people when we expand to a new market. We believe the expansion of
Greenwave's footprint and Scrap App, along with the second shredder
commencing operations, will be the primary growth drivers for
our revenues – and, likely, margins – in 2024.
Central to Greenwave's growth strategy are the principles that
a) we do not overpay for acquisitions and b) any deal we pursue
must be properly structured to minimize dilution and limit impact
to cashflow. Our goal is to utilize seller's notes as our preferred
form of consideration as we expand – we do not expect to win every
deal, nor should that be our objective. We intend to spend the time
and energy required to ensure the deals we pursue are fairly
priced, properly structured, and have the potential to create
significant value for our shareholders.
Similar to most industries, there has been a tremendous amount
of consolidation in scrap metal companies over the past several
years. Greenwave is now one of the largest independent chains
of scrap yards remaining in the country, with significant market
share in our key markets. Further, we believe there is significant
value in our licenses, municipal and corporate contracts garnered
over our 20 year operating history, robust infrastructure, and team
of seasoned experts.
We believe the next few months will be transformative for
Greenwave and look forward to sharing our progress and
developments.
We thank all of our shareholders and appreciate your continued
support.
To an exciting 2024,
Danny Meeks
Chairman and Chief Executive Officer
Greenwave Technology Solutions, Inc.
(1)
https://www.recyclingtoday.com/news/sims-baltimore-scrap-acquisition-usa-metal-recycling-mid-atlantic/
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
