Company to Accelerate Recovery and Monetization of Rare
Earth Metals
Transaction Prohibits Short Selling, Optimizes Capital
Structure, and Aligns Investors with Long-Term Growth
CHESAPEAKE, Va., Jan. 13,
2025 /PRNewswire/ -- Greenwave Technology
Solutions, Inc. (Nasdaq: GWAV) ("Greenwave" or the
"Company"), a leading supplier of sustainably-sourced ferrous,
non-ferrous and rare-earth metals, announced today the entry into a
securities purchase agreement with institutional and accredited
investors for a registered direct offering and concurrent private
placement priced at the market as of January
10, 2025. The Company is set to raise approximately
$4 million in gross proceeds before
deducting fees and expenses.
The agreement involves the sale of 7,544,323 shares of common
stock at a price of $0.5302 per
share, along with accompanying warrants to purchase an equal number
of shares. The warrants, exercisable at $0.5302 per share following approval by
stockholders, will expire five years from the date stockholders
approve the issuance. The offering is expected to close on or about
Tuesday, January 14, 2025.
Some other key highlights of the offering include:
- This financing underscores investor confidence in Greenwave's
growth potential and strengthens the Company's position in the
rapidly expanding rare earth metals market—crucial for renewable
energy and advanced technology applications.
- Participating investors agreed to a prohibition on shorting the
Company's common stock while such investors own warrants, ensuring
alignment with Greenwave's long-term vision and reducing downward
stock pressure.
- The transaction includes a forward-looking call feature,
enabling Greenwave to redeem such warrants for cash proceeds of up
to an additional $4 million as the
stock price appreciates, following shareholder approval and a
registration statement covering the shares being declared
effective, fueling growth with minimal dilution.
Dawson James Securities Inc. is acting as the sole placement
agent for this transaction.
The shares are being offered pursuant to a shelf registration
statement on Form S-3, effective since April
28, 2023. The warrants and the shares of common stock
underlying the warrants were not offered under the registration
statement but through an exemption from registration under the
Securities Act of 1933. The Company has agreed to file a
registration statement under the Securities Act of 1933, as amended
(the "Act"), with the Securities and Exchange Commission (the
"SEC"), covering the resale of the shares of common stock issuable
upon exercise of the warrants within 20 days following the closing
of the offering.
This press release shall not constitute an offer to sell or the
solicitation of any offer to buy the securities discussed herein,
nor shall there be any offer, solicitation, or sale of the
securities in any state in which such offer, solicitation, or sale
would be unlawful prior to registration or qualification under the
securities laws of any such state.
For more details, refer to Greenwave Technology Solutions' Form
8-K filed with the SEC on January 13,
2025.
Advancing Rare Earth Recovery Amid Global Supply Chain
Challenges
Greenwave is fast-tracking initiatives to recover
and monetize rare earth metals as global supply chain risks
escalate, driven by China's 2024
export restrictions on critical materials like gallium, germanium,
and antimony.
Leveraging advanced technologies, Greenwave recovers rare earth
elements from high-value sources such as lithium batteries, solar
cells, LED manufacturing scrap, and electronic components. The
Company is actively evaluating the development of a dedicated rare
earth recovery facility to meet growing domestic demand.
Strategically positioned near Naval Station Norfolk and the Port
of Virginia, Greenwave's recycling
facilities benefit from premium scrap metal streams sourced from
military bases, defense contractors, shipyards, manufactures and
logistics hubs, enhancing its market leadership in sustainable
metals recovery.
About Greenwave Technology Solutions, Inc.
Greenwave
Technology Solutions, Inc. (Nasdaq: GWAV) operates 13 metal
recycling facilities supplying leading steel mills and industrial
partners with sustainably sourced metals. Headquartered in
Chesapeake, VA, Greenwave plays a
critical role in infrastructure projects and U.S. national
security, with operations across Virginia, North
Carolina, and Ohio. For
more information, visit www.GWAV.com.
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