Greenwave raises funds for scrap growth

Portsmouth, Virginia-based Greenwave Technology Solutions Inc. says it has closed a $37.7 million private placement with existing shareholders, institutions, other investors and its chairman. Greenwave, formerly known as MassRoots Inc., owns a subsidiary called Empire Services Inc. that operates 11 metal recycling facilities in Virginia and North Carolina.

Regarding the $37.7 million, Greenwave says it will use the proceeds “to redeem all of its Series X and Series Y preferred shares, retire debt outstanding prior to the offering, and to accelerate revenue growth.”

Danny Meeks, CEO of Greenwave, says, “We are at an inflection point in Greenwave’s growth, and this offering positions the company to rapidly roll up independent, profitable metal recycling facilities in the coming months.”

Meeks expresses optimism for the metals recycling sector, saying, “The passage of the Infrastructure Investment and Jobs Act is expected to increase demand for steel by 3 to 4 million metric tons per year while supply of prime scrap has been consistently shrinking for several years. We believe this supply/demand imbalance for recycled steel and other metals, combined with inflationary pressures, will create optimal market conditions for Greenwave for the foreseeable future.”

Greenwave also is preparing its application to list share on either the NASDAQ or New York Stock Exchange, as the company says it believes a listing on a national exchange would result in an increase in visibility, liquidity and institutional interest [in]” its stock.”

Meeks says he rolled approximately $4.7 million of debt issued in conjunction with the acquisition of Empire into the latest private offering.

The Special Equities Group, a division of Florida-based Dawson James Securities Inc., acted as sole placement agent for the transaction, says Greenwave.