Greenwave Technology Solutions, Inc. Strategically Positions for Growth in Rapidly Consolidating U.S. Scrap Metal Industry

CHESAPEAKE, Va., Dec. 6, 2024 /PRNewswire/ -- Greenwave Technology Solutions, Inc. (Nasdaq: GWAV) ("Greenwave" or the "Company"), a leader in metal recycling operations across Virginia, North Carolina, and Ohio, announces strategic developments poised to deliver shareholder value in a rapidly consolidating scrap metal market.

Key Highlights

• $1.7 Million Annual Cost Savings: Greenwave recently acquired the real estate for seven of its core facilities, thereby reducing its annual rent expenses by approximately $1.7 million, enhancing cashflow and positioning Greenwave for future growth and potential high-value strategic transactions.
• Twenty Year Relationship with Sims Metal: Greenwave generated $20.7 and $18.0 million in revenue from Sims Metal, the world's largest scrap metal company, in 2023 and 2022, respectively, underscoring market confidence.
• Significant M&A Activity in Scrap Metal: Steelmakers are leading a wave of consolidation, securing supply of raw materials to feed a projected increase of 16 million tons of annual capacity in the coming years.⁽¹⁾

Peer Benchmarking Supports Valuation Upside
Recent transactions indicate substantial valuation potential for Greenwave:

• Sims Metal acquired Baltimore Scrap Corp. for $220 million in August 2023. Baltimore Scrap operates 17 yards, four shredders, and processes 600,000 metric tons of scrap each year.⁽²⁾
• Nucor acquired the assets of Garden Street Iron & Metal, including one feeder and one shredder yard, in 2023. The terms of the acquisition were not disclosed.⁽³⁾
• Cleveland-Cliffs acquired Ferrous Processing and Trading Co. for $775 million in 2021. FPT is a leading U.S. processor, buyer, seller, and recycler of scrap metals.⁽⁴⁾
• Steel Dynamics completed the acquisition of Roca Acero for $90 million in October 2022.Roca Acero's operations include five scrap processing facilities in Northern and central Mexico, with an annual processing capacity of approximately 850,000 gross tons.⁽⁵⁾

Unlocking Shareholder Value

Greenwave's strong operational footprint and relationships with industry leaders – Nucor Corporation, Sims Metal Management, and Cleveland-Cliffs, Inc. – position the Company to capitalize on robust domestic demand and favorable policy shifts. As regional steel supply chains pivot toward sustainable and domestically sourced metals, Greenwave is optimally positioned for rapid growth and strategic transactions to unlock shareholder value.

About Greenwave – One of the Mid Atlantic's Leading Metal Recyclers

As an operator of 13 metal recycling facilities, Greenwave Technology Solutions, Inc. (Nasdaq: GWAV) supplies leading steel mills and industrial conglomerates with ferrous and non-ferrous metal. With steel being one of the most recycled materials worldwide, Greenwave supplies the raw metal utilized in critical infrastructure projects and U.S. warships vital to American national security interests. Headquartered in Chesapeake, VA, the Company has 167 employees with metal recycling operations across Virginia, North Carolina, and Ohio.

For detailed financials and updates, visit www.GWAV.com.

Forward-looking Statements

This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These include, without limitation, statements about its revenue growth, opening of additional locations, margin expansion and cashflow projections. These statements are identified by the use of the words "could," "believe," "anticipate," "intend," "estimate," "expect," "may," "continue," "predict," "potential," "project" and similar expressions that are intended to identify forward-looking statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although the Company believes that its plans, objectives, expectations and intentions reflected in or suggested by the forward-looking statements are reasonable, the Company can give no assurance that these plans, objectives, expectations or intentions will be achieved. Forward-looking statements involve significant risks and uncertainties (some of which are beyond the Company's control), assumptions and other factors that could cause actual results to differ materially from historical experience and present expectations or projections. Actual results may differ materially from those in the forward-looking statements and the trading price for the Company's common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in the Company's filings with the SEC. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

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SOURCE Greenwave Technology Solutions