GREYSTONE LOGISTICS, INC.

Greystone Logistics, Inc.

Business overview

Greystone manufactures plastic pallets from recycled HDPE. It sells pallets through its wholly owned subsidiary, Greystone Manufacturing, L.L.C. (GSM) in Oklahoma. Production includes integrated grinding and pelletizing lines that convert recycled plastic into regrind pellets (BBs) used as feedstock for pallet manufacturing. The company also provides grinding and pelletizing services to third parties for a fee. Some pallet production is outsourced to third parties to handle overflow. Extrusion-based pallet production (historically at Jasper, IN) uses robot welding for unusual pallet sizes; extrusion equipment was moved to Greystone facilities in Iowa after Jasper Rubber’s bankruptcy. Markets are primarily in the United States, serving beverage, pharmaceutical, and other industries.

Capacity, products and distribution

• In-house production capacity: approximately 225,000 pallets per month.
• Injection molding footprint (as of May 31, 2026): 14 machines total — 12 in Bettendorf, IA and 2 in Palmyra, MO.
• Pellet and grinding support: two grinding lines and four pelletizing lines for converting recycled HDPE into regrind pellets for pallet production.
• Two high-tonnage machines in Palmyra, MO have been periodically subleased for other high-pressure injection products.
• Product range:
  • Rackable pallets: 37”x32”, 40”x32”, 37”x37”, 48”x40” (rackable), 48”x44”, 48”x48”, 36”x36”, and others.
  • Specialty pallets: 44”x56” can pallet; 48”x45” monoblock; 48”x40” monoblock; 30”x38” stand-up beer keg pallet; 48”x40” one-piece full picture-frame pallet.
  • Nestable pallets with detachable runners, display pallets, keg and drum pallets.
  • Unusual sizes produced via extrusion (equipment relocated from Jasper to Iowa).

Real estate and sites

• Bettendorf, IA: Three primary buildings totaling 126,000 sq ft of manufacturing and warehouse space on ~6.35 acres; leased from Greystone Real Estate, L.L.C. (GRE), owned by director Robert B. Rosene, Jr.
• Additional owned space: Two Greystone buildings within a 30-mile radius of Bettendorf totaling ~75,000 sq ft for warehouse and grinding operations.
• Palmyra, MO: Facility housing two injection molding machines; production is outsourced to the lessor.
• Jasper, IN: Previously housed extrusion equipment; Greystone no longer occupies the Jasper location and equipment was relocated to Iowa.
• Tulsa, OK: Office of about 3,000 sq ft leased from a related party.

Customers and revenue

• Historically two major customers accounted for large portions of revenue: approximately 63% of sales in fiscal 2025 and approximately 53% in fiscal 2026.
• In fiscal 2026 the company lost a major customer; management estimates an approximate $30 million loss in sales, equal to about 55% of the company’s historical sales to that customer.
• As of 2026, no single customer provides more than 10% of Greystone’s revenue.
• Management expects to broaden the customer base and pursue pallet pooling opportunities and new product lines.

Employees

• Full-time employees (FTEs): approximately 82 as of May 31, 2026.
• Temporary personnel: approximately 16 FTEs (as of May 31, 2026) provided by a personnel service to support production on an as-needed basis.

Market context and economics

• Global plastic pallet market size: about $9.6 billion in 2026, with projected mid-single-digit growth through 2031.
• Plastic pallets are the fastest-growing category by material in the broader pallet market.
• Rackable pallets represent an estimated 43% of the global plastic pallet market by pallet type in 2026.
• HDPE is the leading material for plastic pallets due to durability, chemical and moisture resistance, and suitability for repeated use in food, beverage, and pharmaceutical supply chains.
• Market drivers include e-commerce expansion, warehouse automation, and sustainability and regulatory trends that favor reusable plastic pallets and recycling.

Intellectual property, regulation and competition

• Greystone seeks patent protection for technical advances and relies on a combination of patents and trade secrets.
• Regulatory exposure includes environmental laws and recycling regulations; legislative changes related to plastics and recycling could affect operations.
• Competition includes many wood-pallet manufacturers (lower unit costs) and plastic-pallet manufacturers (three large and about ten smaller players).
• The company emphasizes proprietary designs, cost advantages, and ESG benefits of recycled plastic pallets (reduction of deforestation, landfill diversion, recyclability) as part of its sales strategy.

Financial condition and liquidity

• The company has incurred net losses, negative operating cash flows, and reported a working capital deficit as of May 31, 2026, creating substantial going-concern risk.
• The business has experienced debt covenant difficulties; lenders have provided temporary relief and accommodations such as covenant relief and interest-only terms, but ongoing financing needs persist.
• Management identifies priorities to replace lost revenues, generate positive cash flow, maintain lender support, and obtain additional financing.
• Insider ownership (executive officers, directors and their affiliates) controls about 46.69% of outstanding common stock and voting power.
• The company’s stock is described as a penny stock with limited trading activity and liquidity unless certain listing or price conditions are achieved.
• The company may issue additional equity or convertible securities, which could dilute existing shareholders.
• Other financial risks include limited long-term written contracts with suppliers and customers, potential supply disruptions, and dependence on key personnel.

Governance, security and compliance

• The executive team, including CEO/CFO/Chairman Warren F. Kruger, is identified as a key governance risk due to reliance on a limited number of senior leaders.
• Cybersecurity controls and third-party vendor oversight are in place; SOC reports are reviewed for vendors and device-level protections are required for employees.
• The company cites potential product liability exposure and the need to maintain adequate insurance coverage.

Bottom-line impression

Greystone is a U.S.-based plastic pallet manufacturer that uses recycled HDPE, with in-house capacity supported by outsourcing for overflow. It produces a mix of standard and specialty pallets and operates extrusion-based production for larger and unusual sizes. The company has faced high customer concentration historically and lost a major customer in 2026, which reduced sales materially. Greystone faces ongoing liquidity and debt-service pressures, concentrated governance, and competitive market conditions, while emphasizing ESG advantages and pursuing a broader customer base and new product opportunities.