Greenwave Installing Second Automotive Shredder and Downstream Processing System
New Machinery Expected to More Than Double Revenue Generating Capacity
February 28, 2022
Greenwave Technology Solutions, Inc. ("Greenwave" or the "Company") (OTCPink:MSRT) is pleased to announce that its subsidiary, Empire Services, Inc. (“Empire”), is in the process of installing a second automotive shredder to double its processing capacity, which could result in its dealer scrap product line generating an additional $8-15 million in revenue over the next 18 months.
Further, Greenwave is installing a downstream processing system capable of recovering millimeter-minus pieces of metal from its shred residue or “fluff” as it is known in the industry. Greenwave expects that by recovering the metals from its shred residue, this new product line could generate an additional $10-20 million in revenue over the next 18 to 24 months and significantly increase Empire’s profit margins.
Empire generated $27.5 million in revenue in fiscal year 2021. It has expanded to 11 locations and 96 employees over the past twenty years primarily by re-investing its profits into growing the business.
“With the installation of this second automotive shredder, Empire’s operational infrastructure has the capacity to support significant growth with the goal of generating $100 million in annual revenue by 2025,” stated Danny Meeks, Chief Executive Officer of Greenwave. “Prices for scrap metal are on the rise driven by depleted inventories and robust demand, with many analysts projecting they could go much higher. We believe Greenwave is one of the most attractive companies in the scrap metal industry given its current valuation and potential for significant growth. We appreciate Greenwave’s shareholders for their trust and support the past several months as we cleaned up our capitalization structure, closed a $37.7 million offering, and put systems in place to position the Company for rapid expansion.”
Greenwave expects to submit its application to uplist to the Nasdaq in March 2022 with the goal of listing on a national exchange by June 2022. Empire is expected to open its 12th location in Fairmont, NC in March 2022 following the completion of renovations to its front office and the training of its staff.
Greenwave Technology Solutions, Inc., through its wholly owned subsidiary Empire Services, Inc. (“Empire”), is a leading operator of 11 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. For more information, please visit https://www.greenwavetechnologysolutions.com/.
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 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.