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Company has redeemed all of its Series X and Y preferred shares, retired outstanding debt prior to this offering, and will utilize additional proceeds to accelerate revenue growth
PORTSMOUTH, Va., December 01, 2021--(BUSINESS WIRE)--Greenwave Technology Solutions, Inc. ("Greenwave" or the "Company") (OTCPink:MSRT) is pleased to announce that it has closed a $37.7 million private placement with existing shareholders, institutions, accredited investors, and its chairman. The Company is utilizing the proceeds to redeem all of its Series X and Series Y preferred shares, retire debt outstanding prior to the offering, and to accelerate revenue growth.
Upon uplisting to a national exchange, the convertible notes issued in this offering will automatically convert into equity. The Company believes it can meet the shareholder equity requirements of NASDAQ or NYSE without any further capital raises.
"We are at an inflection point in Greenwave’s growth and this offering positions the Company to rapidly roll-up independent, profitable metal recycling facilities in the coming months," stated Danny Meeks, Chief Executive Officer of Greenwave. "The passage of the Infrastructure Investment and Jobs Act is expected to increase demand for steel by 3 to 4 million metric tons per year while supply of prime scrap has been consistently shrinking for several years. We believe this supply/demand imbalance for recycled steel and other metals, combined with inflationary pressures, will create optimal market conditions for Greenwave for the foreseeable future."
The Company recently opened its 11th metal recycling facility in Virginia Beach and plans to roll-up independent, profitable scrap metal facilities to accelerate its revenue growth and create shareholder value. Greenwave is in the final stages of preparing its formal application to uplist to the NASDAQ or NYSE, as the Company believes a listing on a national exchange would result in a significant increase in visibility, liquidity, and institutional interest for its stock.
Danny Meeks, the Company’s Chairman and Chief Executive Officer, rolled approximately $4.7 million of debt issued in conjunction with the acquisition of Empire into this offering.
The Special Equities Group (SEG), a division of Dawson James Securities, Inc., acted as sole placement agent for the transaction.
Full terms of the financing agreement can be found in the Company’s Current Report on Form 8-K to be filed with the U.S. Securities and Exchange Commission.
MassRoots, Inc., which is changing its name to Greenwave Technology Solutions, Inc., through its wholly owned subsidiary Empire Services, Inc. ("Empire"), is a leading operator of 11 metal recycling facilities in Virginia and North Carolina. At these facilities, Empire collects, classifies, and processes raw scrap metal (ferrous and nonferrous) for recycling. Steel is one of the world’s most recycled products with the ability to be re-melted and recast numerous times while offering significant economic and environmental benefits when compared with virgin materials.
The company has announced that it intends to change its corporate legal name from MassRoots, Inc. to Greenwave Technology Solutions, Inc. Although the legal name of the company will continue to be MassRoots, Inc. until the name change process has been completed, for marketing and branding purposes the company has begun referring to itself as Greenwave.
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 name change, revenue growth, opening of additional locations, and a listing on a senior exchange. 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 we believe that our plans, objectives, expectations and intentions reflected in or suggested by the forward-looking statements are reasonable, we 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 our control) and assumptions 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 our common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in our filings with the U.S. Securities and Exchange Commission. Except as required by law, we undertake 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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