Greenwave anticipates revenue boost with second shredder

Chesapeake, Virginia-based Greenwave Technology Solutions Inc. expects its second auto shredder put into operation to materially increase revenue in this year’s fourth quarter at its location in Carrollton, Virginia.

In a late-June filing with the Securities and Exchange Commission (SEC), Greenwave and its auditor reported cash on hand of about $375,000 and what it called a working capital deficit (current liabilities in excess of current assets) of more than $22 million and what it reported as an accumulated deficit of more than $368 million.

In a late-August common stock offering prospectus also filed with the SEC, Greenwave estimated its net tangible book value as of mid-year to be approximately negative $14.2 million, or negative $1.26 per share. The company has set a $1.27 value on the stock it is offering.

In the meantime, Greenwave seems to be pinning its hopes on expanded processing capacity at its network of 13 scrap metal recycling facilities in Ohio, North Carolina and Virginia, which operate under the Empire Services Inc. name.

The company says its second automotive shredder will double its ferrous metal processing capacity and facilitate its planned expansion to more than 20 metal recycling facilities in the coming months.

Last month, the company announced it had started operating a shear-baler at its Cleveland facility, which it says is designed for shearing car bodies and heavy metals.

“With this equipment up and running, the Cleveland facility is set for a considerable uptick in metal recycling production capacity," a Greenwave spokesperson says. "The implications for Greenwave are significant, offering promising avenues for revenue enhancement.”

In August, Greenwave pointed to its auto shredding and downstream system in Kelford, North Carolina, as being on track to generate what it calls several hundred thousand dollars of additional high-margin revenue per month. The company has claimed the new system is on track to generate in excess of $1 million per month in revenue with 80 percent-plus margins later this year.

“Greenwave now boasts some of the most robust and technologically advanced infrastructure for processing scrap metal on the East Coast, positioning the company for rapid expansion,” Greenwave CEO Danny Meeks says.

“This expansion enables Greenwave to continue meeting our customers’ growing demands for mill-ready shred and other recycled metals. We’re grateful to our shareholders for their patience and look forward to keeping investors updated on our progress.”

The company says the installation of Greenwave’s second shredder, in Carrollton, marks the end of a multiyear capital expenditure cycle, including $15 million invested in the past 18 months.