CHESAPEAKE, Va. - Greenwave Technology Solutions, Inc. (NASDAQ: GWAV), a metal recycling company, has announced a reverse stock split of its common stock at a ratio of 1-for-150, effective at the close of business on May 31, 2024. The adjustment is aimed at boosting the per-share trading price to satisfy Nasdaq's minimum bid price requirement for continued listing.
The company's common stock will begin trading on a reverse split-adjusted basis on June 3, 2024, under the same ticker symbol 'GWAV' on the Nasdaq Capital Market. The new CUSIP number post-reverse split will be 57630J 403. This corporate action will not affect the par value of the stock, which remains at $0.001 per share.
Shareholders will not need to take action if their shares are held electronically in book-entry form. Those with shares through a bank, broker, or other nominee will see their holdings automatically adjusted. Shareholders with physical stock certificates will receive instructions from the company's transfer agent, Equity Stock Transfer, for exchanging their certificates.
The reverse stock split will uniformly affect all stockholders and will not change their percentage ownership in the company, except for adjustments due to rounding of fractional shares, which will be rounded up to the nearest whole share.
Following the reverse split, the number of outstanding shares will decrease from approximately 1.13 billion to around 7.55 million, subject to rounding for fractional shares. The reverse split will also result in proportional adjustments to the company's options and warrants.
Greenwave, through its subsidiary Empire Services, Inc., operates 13 metal recycling facilities in Virginia, North Carolina, and Ohio. The company focuses on collecting, classifying, and processing scrap metal and employs technologies to enhance processing volumes and efficiencies. Greenwave's recycling efforts contribute to environmental benefits such as reduced energy use and CO2 emissions.
The press release also contains forward-looking statements regarding the company's plans for revenue growth and expansion, which are subject to risks, uncertainties, and assumptions. These statements are not guarantees of future performance and are affected by various factors that could cause actual results to differ materially from projections.
This news is based on a press release statement from Greenwave Technology Solutions.
InvestingPro Insights
As Greenwave Technology Solutions, Inc. (NASDAQ: GWAV) navigates through its corporate restructuring with a reverse stock split to meet Nasdaq's requirements, investors and market watchers are closely monitoring the company's financial health and stock performance.
With real-time data from InvestingPro, we see that Greenwave's market capitalization stands at a modest $79.26 million. The company's revenue over the last twelve months as of Q1 2024 is reported at $35.13 million, reflecting a growth of 6.13%, signaling a moderate upward trend in sales.
Still, the financials also reveal some challenges. The company's P/E Ratio is not applicable, indicating that it has not been profitable over the last twelve months. This is further evidenced by the adjusted P/E Ratio of -1.56 and an operating income margin of -29.44%, underscoring the company's difficulty in generating profits from its operations. Moreover, the Price / Book ratio is high at 13.01, suggesting that the stock may be trading at a premium compared to the company's net asset value.
InvestingPro Tips for GWAV highlight several concerns, including the company's challenges in making interest payments on debt and the fact that its short-term obligations exceed its liquid assets. The stock has experienced significant price volatility and has performed poorly over various time frames, including a substantial drop of approximately 90.5% over the last year. Nevertheless, there has been a strong return over the last month, with a 20.92% price total return, offering a glimmer of hope for a potential recovery.
For investors seeking a deeper analysis of Greenwave Technology Solutions and additional InvestingPro Tips, the full suite of insights can be accessed at https://www.investing.com/pro/GWAV. There are 11 more tips available on InvestingPro, providing a comprehensive view of the company's financial health and stock performance. To take advantage of these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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