Greenwave Technology Solutions, Inc. (NASDAQ:GWAV), a company specializing in metals service centers and wholesale, announced on Monday the entry into a securities purchase agreement with institutional and accredited investors for a registered direct offering and concurrent private placement. The company is set to raise approximately $15.3 million in gross proceeds before deducting fees and expenses.
The agreement involves the sale of 5,044,885 shares of common stock at a price of $3.035 per share, along with accompanying warrants to purchase an equal number of shares. The warrants, exercisable immediately at $2.91 per share, will expire five years from the issuance date. The offering is expected to close on or about Thursday, June 12, 2024.
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.
Greenwave intends to use the net proceeds for debt satisfaction and working capital purposes. The company has committed to filing a registration statement for the resale of the shares underlying the warrants within 20 days following the purchase agreement and to make efforts towards having the registration statement declared effective by the SEC within 120 days after the closing of the offering.
Dawson James Securities, Inc. served as the placement agent for the offering and will receive a cash fee of $918,673, which is 6% of the gross proceeds, and reimbursement for certain expenses. Additionally, Dawson James Securities will receive warrants to purchase up to 504,489 shares of common stock.
The above information is based on a press release statement and details provided in the SEC filing by Greenwave Technology Solutions, Inc.
In other recent news, Greenwave Technology Solutions, Inc. has announced a series of strategic financial maneuvers. The company has registered a direct offering and a concurrent private placement aiming to raise approximately $15.3 million. The funds raised are intended for debt satisfaction and working capital purposes. Additionally, Greenwave's Chairman and CEO, Danny Meeks, converted approximately $17.22 million of debt into company equity, a move seen as a vote of confidence in the company's future.
Greenwave also reported record revenues for May 2024, attributed to increased processing volumes and a spike in copper prices. This performance is largely credited to the company's downstream processing system at its Kelford, North Carolina plant. Furthermore, Greenwave has strengthened its balance sheet by approximately $27 million over the past 90 days, including a $5.25 million capital infusion.
In a bid to satisfy Nasdaq's minimum bid price requirement, Greenwave has implemented a reverse stock split at a ratio of 1-for-150. The company has also been granted an additional 180 days by Nasdaq to comply with the minimum bid price requirement. These recent developments reflect Greenwave's commitment to maintaining its Nasdaq listing and supporting its growth trajectory.
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