🤯 Have you seen our AI stock pickers’ 2024 results? 84.62%! Grab November’s list now.Pick Stocks with AI

Greenwave secures debt relief to boost metal processing

Published 19/03/2024, 10:34 pm
© Reuters.
GWAV
-

CHESAPEAKE, Va. - Greenwave Technology Solutions, Inc. (NASDAQ: GWAV), a prominent operator of metal recycling facilities, announced a restructuring of its senior secured debt. The agreement with the note holders waives the requirement for quarterly cash payments until September 30, 2024, and monthly amortization payments until July 31, 2024. This financial maneuver is aimed at supporting the company's growth plans.

The company is preparing to launch its second automotive shredder, which is anticipated to double its ferrous metal processing capacity. This shredder, identical to the existing one, is expected to be operational shortly after being connected to the power grid by April 9, 2024. The enhancement in processing capability is projected to increase revenue by approximately 30%, with significant margins on the additional steel volume.

Greenwave has reported a record volume of steel processed in 2024, leading to an expectation of record revenues. The additional cash flow from the debt restructuring is intended to be used to aggressively expand operations. CEO Danny Meeks expressed gratitude for the support of shareholders and debtholders and highlighted the company's efforts to scale up metal volume and revenues.

This news follows the company's filing of a Current Report on Form 8-K with the U.S. Securities and Exchange Commission on March 18, 2024. Greenwave, through its subsidiary Empire Services, Inc., operates 13 metal recycling facilities across Virginia, North Carolina, and Ohio, and plans to continue expanding its footprint in the industry.

This article is based on a press release statement from Greenwave Technology Solutions.

InvestingPro Insights

As Greenwave Technology Solutions, Inc. (NASDAQ: GWAV) forges ahead with its expansion plans, recent data from InvestingPro provides a nuanced view of the company's financial health. With a Market Cap of approximately 6.18 million USD, the company's size remains modest. The Revenue Growth for the last twelve months as of Q3 2023 stands at -9.49%, indicating challenges in the past year, while a more positive quarterly revenue growth of 11.36% in Q3 2023 suggests a potential turnaround.

However, it's important to note that Greenwave operates with a significant debt burden and may have trouble making interest payments on its debt, as highlighted by two of the InvestingPro Tips. This is particularly relevant as the company has recently restructured its debt to support growth. The company's stock has fared poorly over the last month, with a 52.48% decline in price total return, reflecting the market's reaction to its financial position.

For investors considering Greenwave's stock, it's worth noting that the company's stock generally trades with high price volatility, which is a critical factor for risk assessment. For more detailed analysis and further InvestingPro Tips about Greenwave, investors can visit InvestingPro. There are 17 additional tips listed, providing a comprehensive look at the company's financial metrics and stock performance. To access these insights, use the exclusive coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.