In a recent move, Greenwave Technology Solutions, Inc. (NASDAQ:GWAV), a company specializing in metals service centers and offices, has amended its corporate charter to introduce a new series of preferred stock. On Monday, the company filed with the Secretary of State of Delaware to create 450,000 shares of Series A-1 Preferred Stock.
This strategic decision was disclosed in a Form 8-K filing with the Securities and Exchange Commission on November 18, 2024. The new preferred stock, with a par value of $0.001 per share, is part of the company's Second Amended and Restated Certificate of Incorporation.
Details of the rights, preferences, and limitations of the Series A-1 Preferred Stock are outlined in the Certificate of Designations, which was included as an exhibit in the SEC filing. This action by Greenwave Technology Solutions reflects a potential effort to raise capital or create a new ownership structure, although the specific purpose of the new stock series was not detailed in the filing.
The company, which operates under the organization name 07 Trade & Services, is headquartered in Chesapeake, VA, and has been incorporated in the state of Delaware. Greenwave Technology Solutions, previously known as MassRoots, Inc., underwent a name change on October 11, 2013.
In other recent news, Greenwave Technology Solutions has been grappling with a Nasdaq delisting threat due to its share price falling below the required minimum bid price. In response, the company is considering strategies such as a potential reverse stock split to regain compliance. Concurrently, Greenwave has reported record revenues for May, driven by growing processing volumes and a surge in copper prices.
The company also raised approximately $15.3 million through a direct offering and private placement, aimed at satisfying debt and bolstering working capital. In a significant corporate governance change, Director John Wood resigned from the board, with his successor yet to be announced.
Greenwave has also amended its by-laws and equity incentive plan, and CEO Danny Meeks converted approximately $17.22 million of company debt into equity, strengthening its financial stance.
Lastly, the company announced expansion plans, including operating a second shredder and expanding its proprietary technology platform, ScrapApp.com, nationwide. These are the recent developments in the company.
InvestingPro Insights
Greenwave Technology Solutions' recent decision to introduce a new series of preferred stock comes at a challenging time for the company, as revealed by InvestingPro data. The company's market capitalization stands at a modest $6.9 million, reflecting its small-cap status. Despite a revenue of $33.92 million in the last twelve months as of Q3 2024, GWAV is facing profitability issues, with an adjusted operating income of -$18.02 million for the same period.
InvestingPro Tips highlight that GWAV is "trading at a low Price / Book multiple" of 0.13, which could indicate that the stock is undervalued. However, this should be considered alongside the fact that the company is "quickly burning through cash" and is "not profitable over the last twelve months." These factors may explain the company's decision to create new preferred stock, possibly as a means to raise capital.
The stock's performance has been notably poor, with InvestingPro data showing a staggering -99.55% price total return over the past year. This aligns with the InvestingPro Tip that the "stock has taken a big hit over the last six months."
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for GWAV, providing a deeper understanding of the company's financial health and market position.
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