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Company confirms it is not pursuing a reverse stock split; provides update on share activity, commissioning progress, expansion discussions, and the growing Texas market opportunity ahead of it
MIDLAND, TX / ACCESS Newswire / August 7, 2026 / Waste Energy Corp. (OTCID:WAST) ("Waste Energy" or the "Company"
Waste Energy remains focused on executing the operating plan it has outlined throughout 2026: building the infrastructure, regulatory foundation and processing capabilities necessary to transition its Midland, Texas campus from development into commercial operations. Having secured a five-year regulatory approval from the Texas Commission on Environmental Quality in July, the Company continues to advance toward what management believes is one of the most important waste markets in the country.
The Company is currently preparing its Form 10-Q for the quarter ended June 30, 2026 and expects to file the report shortly. Following the substantial work completed earlier this year to restore the Company's financial reporting and strengthen its audit and reporting infrastructure, management remains committed to maintaining timely and transparent reporting as Waste Energy enters its next stage of development.
The Company also confirmed that management is not currently pursuing a reverse stock split.
"Shareholders have watched us spend much of the past year doing the difficult work required to build a real waste infrastructure business - permitting, equipment installation, site development, financial reporting and establishing the operational foundation necessary to move into revenue," said Scott Gallagher, Chairman and Chief Executive Officer of Waste Energy Corp. "That work continues every day. Our focus has not changed because of short-term movements in our share price. Our focus is on executing the business plan and building long-term underlying value."
As previously disclosed, the Company has outstanding convertible notes. Consistent with the terms of those instruments, a small number of holders of that debt have converted their notes into shares in recent weeks. Management believes this activity is concentrated among a limited number of parties rather than reflecting broader or undisclosed issues, and is a mechanical function of previously disclosed financing arrangements unrelated to the Company's underlying operations or performance.
Initial Commissioning Activities Underway in Midland
Waste Energy's lead commissioning engineer is currently on site at the Company's Midland waste conversion infrastructure campus and actively working with the Company's operations team toward the initial commissioning of its first waste conversion system.
The commissioning process represents an important transition for Waste Energy as the Company moves from infrastructure development toward operational readiness. The current work includes system integration, equipment testing and preparation of the facility for its first commissioning cycle.
The Company will provide shareholders with additional updates as key commissioning milestones are achieved.
Waste Energy recently received final regulatory approval for its Midland tire recycling operations and continues building its tire feedstock inventory and regional relationships. Most recently, the Company worked directly with Midland County in its second Permian Basin community tire collection initiative, receiving more than 1,200 tires that otherwise required proper recycling or disposal.
Expansion Discussions Underway
In parallel with commissioning its first system, Waste Energy is engaged in discussions on multiple fronts to expand the scale and scope of its operations. Among the opportunities under discussion is a potential transaction that, if completed, management believes could as much as triple the Company's current footprint at its Midland campus. Discussions on this and other potential arrangements are ongoing; no definitive agreement has been signed on any of them, and there can be no assurance that any transaction will be completed on the terms currently contemplated, or at all.
Management believes that, if completed, these opportunities could represent important next steps in the development of the Flagship Midland campus and the Company's broader waste infrastructure strategy. The Company is working to finalize structures for these discussions and intends to provide additional details as, and if, definitive arrangements are reached.
"The hardest part of building a company like ours is the part nobody sees - the permitting, the equipment acquisition, the logistics, the financial reporting. That work is largely behind us. What's ahead is the part shareholders have been waiting for: commissioning our first system, generating real revenue, and expanding this platform across what we believe is one of the best waste markets in the country," Gallagher said. "We're actively engaged in multiple discussions to grow that platform, including one opportunity we believe could meaningfully increase our footprint at Midland. None of these are signed today, and we won't represent otherwise, but the level of activity behind the scenes is real, and we look forward to updating shareholders as these initiatives reach the appropriate stage for disclosure."
The Texas Math: An Economy Bigger Than Italy or Russia - And Growing
Waste Energy's strategy is built around a simple thesis: Texas is where the waste is, and Texas is where the growth is. According to the most recent U.S. Census Bureau estimates:
If Texas were a country, its roughly $2.9 trillion economy would rank as the eighth-largest in the world - ahead of Italy and Russia, and closing in on France;
Eight of the 15 fastest-growing cities in the United States are in Texas, including all five of the fastest-growing cities in the country nationwide;
Harris County, home to Houston, added more new residents than any county in the nation over the past year;
Texas added more residents than any other state in the country for the third consecutive year - by a wide margin over the next-closest state;
Texas has the largest state highway system in the country, along with more interstate highway mileage than any other state, underpinning the logistics and feedstock-collection networks that waste conversion infrastructure depends on; and
Texas accounts for nearly one quarter of all stockpiled scrap tires in the nation - more than any other state - representing a substantial in-state feedstock base for waste conversion capacity like Waste Energy's.
Management believes these trends translate directly into a large and growing addressable market for Texas-based waste conversion capacity - a large and growing economy, more vehicles, more construction, more consumption, and more waste and legacy tire stockpiles requiring diversion and processing, for years to come. More than 250 million end-of-life tires are generated in the United States every year, and recycling markets have not kept pace with generation - and nowhere is that opportunity more concentrated than in Texas. As Texas continues to expand its use of rubberized asphalt in state highway construction, management believes in-state demand for the crumb rubber and other tire-derived products Waste Energy intends to produce will grow alongside it. "We built in Texas because Texas is where this industry needs to be," Gallagher said. "The population growth, the highway infrastructure, the pace of development - it all points to sustained demand for exactly what we're building. We intend to be a part of capturing that opportunity."
Building the Foundation for Revenue Operations
Waste Energy's strategy extends beyond the commissioning of a single processing system. The Company is developing its Midland location as an environmental infrastructure campus designed to support multiple waste processing and conversion activities over time.
Management's priorities for the remainder of 2026 include:
Completing initial commissioning of the Company's first waste conversion system;
Advancing the Midland campus toward commercial operations and revenue generation;
Maintaining current financial reporting and transparency;
Expanding regional waste feedstock relationships;
Evaluating additional processing capabilities and infrastructure at the Midland campus, including the potential footprint expansion described above; and
Advancing other opportunities to expand Waste Energy's operational footprint across Texas.
Seek out strategic acquisitions.
"We understand that shareholders ultimately measure our progress by execution," Gallagher concluded. "Our job is to commission the equipment, begin operations, generate real revenue, and keep building infrastructure that scales - not just at Midland, but across the fastest growing market in America. That is where our attention is focused. This isn't a company we're building to stay small. Every milestone this year - commissioning, permitting, revenue, expansion - is a step toward something capable of real scale. We believe the foundation being built today reflects that "
The Company expects to provide additional updates regarding commissioning, its second-quarter filing, and potential operational expansion as developments occur.