Greenwave receives listing-related notification

Greenwave Technology Solutions Inc., a multilocation scrap metal recycling firm based in Chesapeake, Virginia, has received a notice from the Nasdaq stock market that the bid price for Greenwave stock was below the minimum $1 per share requirement for the exchange for a 30-day period from early September into early October.

According to a Securities and Exchange Commission (SEC) filing, Greenwave received the “Nasdaq Staff Deficiency Letter” on Oct. 3.

“In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the company has been provided an initial period of 180 calendar days, or until Nov. 13, 2023, to regain compliance," Greenwave says.

At the close of the Nasdaq market Oct. 26, Greenwave was trading at 57 cents, down from about 58.4 cents the day before.

The letter from Nasdaq indicates the exchange’s staff will provide written notification that the company has achieved compliance with Rule 5550(a)(2) if at any time before Nov. 13 the bid price of the company’s common stock closes at $1 per share or more for a minimum of 10 consecutive business days.

On the other hand, Greenwave says, “The company intends to monitor the bid price of its common stock and consider available options if its common stock does not trade at a level likely to result in the company regaining compliance with Nasdaq’s minimum bid price rule by April 1, 2024.”

Another document posted to Greenwave’s website indicates it is offering more than 114 million shares of its common stock at a “par value [one-tenth of one cent] per share.” Those shares will be issuable upon the conversion of a new series of senior secured convertible notes in the aggregate original principal amount of $18 million.

The most recent financial statement from Greenwave, issued in mid-August, contained verbiage cautioning there is “substantial doubt" about the company’s ability to continue as a going concern for more than one year.

As of June 30, the company said it had cash holdings of about $375,000 and a working capital deficit (current liabilities in excess of current assets) of more than $22 million and an accumulated deficit of more than $365 million.

This summer, the company, which operates as Empire Recycling in Virginia, North Carolina and Ohio, has issued statements and worked with a public relations firm to emphasize its investments in additional locations and processing equipment.

Greenwave’s most recently completed financial quarter ended Sept. 30. If it follows similar timing to its previous quarterly reporting schedule, its next financial statement filed with the SEC could post in mid-November.

At a mid-October shareholders meeting, the company’s shareholders voted to ratify the appointment of global accounting firm RBSM LLP as its independent registered public accounting firm for the fiscal year ending Dec. 31.