Greenwave Eyes $40M in '24, Cuts Debt for Steel/Copper Boost

Key Takeaway

• Greenwave Technology Solutions Inc. aims for over $40 million in 2024 revenues, buoyed by strategic debt-for-equity swap and operational expansions in steel and copper recycling.
• The company's focus on recycled steel, tapping into a market projected to reach $76.1 billion by 2025, underscores its commitment to sustainable growth and shareholder value.
• Financial maneuvers including reducing debt by $27 million and securing waivers from noteholders until 2024 enhance Greenwave's financial health and growth prospects.

Greenwave's Strategic Growth

Greenwave Technology Solutions Inc. has announced expectations to generate revenues exceeding $40 million by the end of December 31, 2024. This anticipated growth is attributed to the operations in Cleveland, OH, and Virginia Beach, VA. The company is optimistic about becoming EBITDA positive and generating positive cash flows from operating activities, especially with the addition of its second American Pulverizer 60x85 shredder. Greenwave's CEO, Danny Meeks, emphasized the company's strengthened balance sheet and readiness for the next growth phase, highlighting the recent debt-for-equity swap where $17.22 million in debt was exchanged for shares, aiming to align interests with shareholders and bolster confidence in the company's growth strategy.

Demand for Recycled Steel

The demand for recycled steel is on the rise as manufacturers seek sustainable alternatives to reduce CO2 emissions and energy consumption. Greenwave is capitalizing on this trend, with recycled steel offering a 75% reduction in CO2 emissions and a 70% decrease in energy use compared to new material production. The metal recycling industry, valued at $52.1 billion in 2019, is projected to reach $76.1 billion by 2025, growing at a CAGR of 7.8%. Greenwave's investments in infrastructure are set to enhance copper and steel processing capacity, potentially creating significant shareholder value.

Enhancing Financial Health

Greenwave has been actively improving its financial standing by paying down debt and increasing shareholder equity by approximately $27 million. The company has also secured waivers from its senior secured noteholders, providing financial flexibility until September 30, 2024. These efforts are part of Greenwave's strategy to support growth and pursue acquisitions in the fragmented metal recycling market without significantly impacting cash flow or diluting shares. The company's subsidiary, Scrap App Inc., has also contributed to revenue growth, showcasing the potential of its AI-based quoting system for metal recycling.

Alstom and Silver X Mining: Diverse Market Movements

Alstom SA's shares experienced an 11% increase following the announcement of a rights issue and a comprehensive plan to reduce debt, including a €1 billion capital increase and a new €750 million hybrid bond. Despite a wider adjusted net loss, Alstom's commitment to efficiency measures and the support of its main shareholders signal a positive outlook for the company. Meanwhile, Silver X Mining Corp. reported a 12% revenue increase for the full year of 2023, with ambitious plans to expand its mining operations and processing capacity. The silver sector's resurgence, driven by global demand for clean energy and technological applications, positions Silver X for potential growth amid operational expansions.

Management Quotes

• Danny Meeks, CEO of Greenwave:

  "Over the past several weeks, we have significantly strengthened Greenwave’s balance sheet and positioned the company for the next phase of its growth. I believe exchanging my debt into equity further aligns me with all shareholders and reflects the confidence I have in our business and growth strategy." "With a significantly strengthened balance sheet, I believe Greenwave is well positioned for the next phase of growth. The investments we’ve made in Greenwave’s infrastructure will facilitate significant growth in our copper and steel processing capacity, which we anticipate will create significant shareholder value."