#United States #Greenwave Technology #Chesapeake #rare earth metals

Greenwave Technology Solutions Secures $4 Million Funding to Advance Rare Earth Metal Recovery

Greenwave Technology Solutions, Inc. (Nasdaq: GWAV), a prominent player in the recycling of ferrous, non-ferrous, and rare-earth metals, has recently announced a significant securities purchase agreement. This strategic maneuver involves a registered direct offering and a concurrent private placement positioned at market price as of January 10, 2025. The company plans to raise around $4 million from this initiative before managing any deductions for associated fees and expenses.

The arrangement consists of selling 7,544,323 shares of common stock at a per-share price of $0.5302, along with corresponding warrants that allow investors to purchase an equivalent number of shares. These warrants will be exercisable at the same price following stockholders’ approval and will remain valid for five years from the date of approval.

Key Highlights of the Offering

This financing deal is a clear indicator of the investors' confidence in Greenwave's trajectory and its pivotal role in the rapidly evolving rare earth metals sector, which is increasingly essential for renewable energy and advanced technology initiatives. Some notable aspects of the offering include:

• - A prohibition on short selling of the company's stock during the duration that investors hold the warrants, ensuring that interests are aligned with Greenwave's commitment to long-term growth and minimizing stock price fluctuations.
• - The deal includes a forward-looking call feature, enabling Greenwave the option to redeem the warrants for cash proceeds up to an additional $4 million as stock prices rise, contingent upon shareholder approval and regulatory compliance.

Dawson James Securities Inc. has taken on the role of sole placement agent for this transaction. The offering is functioning through a shelf registration statement (Form S-3) effective since April 28, 2023, thereby allowing Greenwave to operate under specific exemptions provided in the Securities Act of 1933.

Tackling Global Supply Chain Challenges

In the context of escalating global supply chain risks, particularly influenced by China’s anticipated export regulations on essential materials such as gallium and germanium slated for 2024, Greenwave is placing significant emphasis on enhancing its efforts to recover and monetize rare earth metals. The company employs cutting-edge technologies to extract rare earth elements from high-value sources, including lithium batteries, solar cells, and LED manufacturing by-products.

Greenwave is also contemplating the construction of a dedicated facility specifically for rare earth recovery to meet the rising domestic demand. Positioned advantageously close to key infrastructures such as the Naval Station Norfolk and the Port of Virginia, Greenwave’s recycling operations are well-placed to benefit from a steady stream of premium scrap metal sourced from military and industry-affiliated entities. This strategic positioning will further bolster its influence within the sustainable metals recovery market.

Future Outlook

Greenwave Technology Solutions is more than just a recycling company; it stands at the forefront of critical infrastructure initiatives and plays a significant role in U.S. national security through its extensive operations across Virginia, North Carolina, and Ohio. With a well-established network of 13 metal recycling facilities that cater to major steel mills and industrial partners, the company is poised for expansive growth.

Investors and stakeholders can gather more insights into the upcoming changes and developments by visiting Greenwave’s official website, where detailed financial reports and updates are regularly posted.

In conclusion, with a clear plan to enhance its operational capabilities, Greenwave is positioning itself to not only recover essential rare earth metals but also pave the way for a more sustainable future in the materials sector. The upcoming funding stands as a testament to the company’s commitment to expanding its reach and influence in this crucial area.