Greenwave to undertake another reverse stock split

Chesapeake, Virginia-based Greenwave Technology Solutions Inc. has announced its intention to undertake a reverse stock split maneuver for its common stock at a ratio of one postreverse split share for every 110 prereverse split shares.

The reverse stock split will become effective at 5 p.m. Eastern this Friday.

This is not the first time Greenwave, which operates metal recycling facilities in Virginia, North Carolina and Ohio predominantly under the Empire Metal Recycling name, has undertaken a reverse share split.

The company also arranged a reverse stock split in mid-2024, that one at a ratio of one postreverse split share for every 150 prereverse split shares, and used it as a technique to retain its Nasdaq listing status.

Now, 14 months later, Greenwave again says its new 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.

The recycling firm says the reverse stock split will reduce the number of shares of common Stock outstanding from more than 62.7 million shares outstanding to approximately 570,900 shares.

At the close of trading Aug. 20, Greenwave’s stock was trading at 0.167 cents per share. The price did not rise in the first several hours of Nasdaq market afterhours trading. Instead, as of 11:15 p.m. Eastern, the stock had lost more than 25 percent of its end-of-trading day value, falling to 0.12 cents per share.

On Aug. 15, Greenwave filed a document with the Securities and Exchange Commission acknowledging it was late in filing its first quarter 2025 financial statement.

In its Form 12b-25, Greenwave says it has not been able to file its quarterly statement without unreasonable effort or expense because additional time is needed to finalize the financial statements and disclosures to be included in such report.

In its 2024 financial year, Greenwave reported a net loss of more than $100 million and indicated in that filing—as it had in previous filings—that it was in a position to require access to additional capital.

As it has in previous SEC filings, Greenwave includes comments pertaining to the future viability of its financial position.

“We may need additional capital in the future to continue to execute our business plan; at the present time, we do not have arrangements to raise additional capital, and we may need to identify potential investors and negotiate appropriate arrangements with them,” Greenwave wrote in that filing, dated April 30.