Empire parent changes name, foresees more acquisitions
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Empire parent changes name, foresees more acquisitions

The former MassRoots, owner of Virginia-based Empire Recycling, is now GreenWave Technology Solutions.

October 19, 2021

Norfolk, Virginia-based MassRoots Inc. has made a filing to change its name to Greenwave Technology Solutions. Inc. The company operates several small-to-medium-sized scrap facilities in Virginia and North Carolina under the Empire Services name. Greenwave’s CEO says it plans to expand Empire Services’ presence in the metals recycling sector.

In a letter issued via the Business Wire public relations service, Greenwave CEO and Chair Danny Meeks writes that “Greenwave expects to rapidly expand its footprint of locations and increase its metal recycling volume, which we believe will result in significant revenue growth.”

Noting that a recent acquisition in Virginia Beach, Virginia, marks its 11th metal recycling facility, Meeks adds, “Since the closing of the Empire merger two weeks ago, we’ve had discussions with owners of scrap yards both in our immediate region and along the eastern seaboard of the United States. Many recognize the industry is ripe for a roll-up as it would likely result in a significant margin expansion while we enter into a commodities super cycle, according to Goldman Sachs.”

He continues, “We believe it is only a matter of time before there’s a roll-up of independent, profitable metal recycling facilities, and as a public company with 31,000 shareholders, Greenwave is in a position to move quickly and aggressively.”

Empire Services is in what Meeks calls “the final stages” of preparing a formal application for a listing on the NASDAQ or NYSE stock exchanges. The company’s shares currently have over-the-counter “pink sheet” status. Writes Meeks, “We believe a listing on a national exchange would result in a significant increase in visibility, liquidity, and institutional interest for our stock.”

The CEO points to wider industry conditions for his belief that “now is the optimal time for a roll-up of metal recycling facilities.” Meeks adds, “Demand for prime metallic scrap is expected to increase by approximately 41 percent from current levels to 29.6 million gross tons by fiscal year 2025. At the same time, the supply of prime steel scrap has been shrinking consistently for more than 50 years, according to a Steel Research Associates LLC scrap model. Greenwave’s management believes that this supply/demand imbalance will continue to cause rising prices for scrap metal for at least the next five to seven years.”

The company’s press release states the legal name of the company will continue to be MassRoots Inc. until the name change process has been completed; but, for marketing and branding purposes, the company has begun referring to itself as Greenwave.