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:

Greenwave Technology Solutions (PRNewsfoto/Greenwave Technology Solutions)

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

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