Greenwave Technology Solutions, Inc. (Nasdaq: GWAV), an operator of metal recycling facilities in Virginia, North Carolina, and Ohio, recently announced that it intends to effect a reverse stock split of its common stock, par value $0.001 per share (the “Common Stock”) at a ratio of 1 post-reverse split share for every 150 pre-reverse split shares. The reverse stock split will become effective at 5:00 p.m. Eastern Standard Time on Friday, May 31, 2024. The Common Stock will continue to be traded on The Nasdaq Capital Market under the symbol GWAV and will begin trading on a reverse split-adjusted basis when the market opens on Monday, June 3, 2024. The new CUSIP number of the Common Stock following the reverse stock split will be 57630J 403. The reverse stock split is intended to increase the per-share trading price of the Common Stock to enable the Company to regain compliance with the minimum bid price requirement for continued listing on The Nasdaq Capital Market.
At the effective time of the reverse stock split, every 150 shares of the Company’s issued and outstanding Common Stock will be converted automatically into one issued and outstanding share of Common Stock without any change in the par value per share. Stockholders holding their shares electronically in book-entry form are not required to take any action to receive post-reverse split shares. Stockholders owning shares through a bank, broker, or other nominee will have their positions automatically adjusted to reflect the reverse stock split, subject to brokers’ particular processes, and will not be required to take any action in connection with the reverse stock split. For those stockholders holding physical stock certificates, the Company’s transfer agent, Equity Stock Transfer, will send instructions for exchanging those certificates for shares held electronically in book-entry form or for new certificates, in either case representing the post-reverse split number of shares.
The reverse stock split will affect all stockholders uniformly and will not alter any stockholder’s percentage interest in the Company’s equity, except to the extent that the reverse stock split would result in a stockholder owning a fractional share. No fractional shares will be issued in connection with the reverse stock split. Any fractional interest in Common Stock will be rounded up to the nearest whole share of Common Stock.
The reverse stock split will reduce the number of shares of Common Stock outstanding from 1,132,490,847 shares, the number of shares outstanding on May 31, 2024, to approximately 7,549,939 shares, subject to adjustment for fractional shares. Proportional adjustments will be made to the number of shares of Common Stock issuable upon exercise or conversion of the Company’s options and warrants, as well as the applicable exercise price.
A reverse stock split and recent announcement that it has retired all of its convertible debt and preferred shares could potentially mean positive moves for Greenwave Technology Solutions, Inc. (NASDAQ: GWAV)
Since the beginning of 2024, Greenwave has eliminated $35.2 million in debt, including $17.2 million of debt held by the Company’s Chairman and CEO. With a significantly strengthened balance sheet, the Company intends to expand its operations in the coming weeks. Greenwave expects to generate approximately $40 million in revenue in 2024, driven by processing volumes of steel and copper.
Greenwave Technology Solutions, Inc., through its wholly owned subsidiary Empire Services, Inc., operates 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. The Company’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.
Greenwave Technology Solutions, Inc.’s announcement of a reverse stock split is a strategic step to regain Nasdaq compliance and enhance its stock market appeal. Coupled with the retirement of all convertible debt, the company has significantly strengthened its balance sheet, positioning itself for expansion and future growth. As Greenwave continues to lead in the recycling industry, its commitment to sustainability and environmental impact remains at the forefront of its operations.
