Greenwave Technology Solutions (NASDAQ: GWAV) stock plummeted 45% in intraday trading Tuesday after the company announced a direct offering and private placement.
Greenwave Technology (GWAV) has inked a securities purchase agreement with selected institutional and accredited investors.
Under the terms of the agreement, Greenwave Technology Solutions will sell 45,058,612 (45.05 million) shares of GWAV stock at $0.1167 per share, resulting in gross proceeds of approximately $5,258,340 ($5.25 million) from the direct offering alongside its private placement. Notably, each share sold in this offering will accompany one warrant for another share of GWAV stock. These warrants carry an exercise price of 30 cents per share and will expire in five years.
Furthermore, Greenwave Technology Solutions has granted warrants for 3,777,777 shares to financial advisor Dawson James Securities, Inc. These warrants, too, have a five-year expiry but carry a higher exercise price of $0.375 per share.
Simultaneously, Greenwave Technology Solutions and DWM Properties LLC have reached a note exchange agreement. This deal covers the remaining $7,218,350 ($7.21 million) of its Secured Promissory Note dated July 31, 2023. As part of the agreement, Greenwave Technology Solutions exchanged the outstanding note for 61,853,899 (61.85 million) shares of GWAV stock.
Greenwave Technology (NASDAQ: GWAV) Stock Price Action
At the time of this report, GWAV stock is trading at $0.07, showing a 44.66% decrease from the previous trading session. This week, it has suffered a 45.22% drop in value. Trading activity has seen 37,050,620 (37.05 million) shares exchanging hands, significantly higher than the average daily volume of 3.32 million.
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