Phase 1 / TCI Only
www.acreteglobal.com  ·  Confidential

Phase 1 Investor Supplement

Comprehensive institutional supplement: capital structure, financials, return architecture, scenarios, and governance.
Total Capital
$10,000,000
Geography
TCI Only
Prototype Role
Proof/demo — no sale proceeds
Document
Investor Supplement 2Q26
Total Capital
$10M
$5M investor + $5M sponsor in-kind
Continue
7.24× / 71.6%
MOIC / IRR — investor cash basis
Buyout
1.75× / 42.1%
MOIC / IRR at 2029 exit
Payback
Year 3
Hurdle: 1.75× MOIC or 25% IRR
Debt
Zero
Clean balance sheet
Prototype
Proof/demo only
No sale proceeds in base case
ESExecutive Summary

This supplement is the institutional follow-up to the Phase 1 investor brief. Its purpose is to explain in detail what sits behind the return outputs, how the downside is bounded, how capital is deployed, and why Phase 1 can be both a stand-alone deal and the foundation for later phases.

ParameterPositionWhy It Matters
GeographyTurks & Caicos Islands onlyPhase 1 plan is single-market
Total Capitalization$10,000,000$5M investor cash + $5M sponsor in-kind — no other capital
DebtZero at launch and throughout base caseSimplifies underwriting; eliminates leverage risk
Continue MOIC / IRR7.24× / 71.6%On $5M investor cash basis through 2035
Buyout MOIC / IRR1.75× / 42.1%At 2029 exit (Year 3)
Hurdle1.75× MOIC or 25% IRRWhichever is reached first
Payback Year2029 (Year 3)Year 4 is the downside timing
Prototype RoleProof/demo assets — no sale proceeds in base caseFactory revenue is the earnings floor

The investor case is built on visible cash events first. Long-duration platform upside is not required for Phase 1 to work.

01Capital Structure — $10,000,000 Total

The total Phase 1 capitalization is $10,000,000 exactly — $5.0M of investor cash equity and $5.0M of sponsor in-kind contribution. The investor cash is fully deployed across factory capex, working capital, materials, fees, and a protected opening liquidity floor. The sponsor in-kind comprises machinery/PP&E and graphene inventory contributed at close. Every dollar is accounted for; the numbers balance to $10M.

Investor Cash — $5,000,000

UseAmount%
Factory CapEx — cash funded$1,690,00033.8%
Launch working capital$850,00017.0%
Initial materials / reserves$500,00010.0%
Fees / contingency / close$250,0005.0%
Opening liquidity floor$1,710,00034.2%
TOTAL$5,000,000100%

Sponsor In-Kind — $5,000,000

ComponentAmount%
Machinery / PP&E$3,000,00060%
Graphene inventory$2,000,00040%
TOTAL$5,000,000100%
GRAND TOTAL$10,000,000 ✓

Prototype homes: 2 × $300K proof/demo assets. No sale proceeds in base case. Factory revenue is the earnings floor, not prototype monetization.

02Revenue, EBITDA, and Margin Conversion

The operating story is intentionally conservative in shape. Negative Year 1 EBITDA is deliberate — it is the honest shape of a first-market industrial build, and it is more credible than a model that assumes immediate premium-margin performance at launch.

YearRevenueEBITDAEBITDA MarginUtilizationWtd ASP/CY
2026$2.9M($1.8M)-63%15%$708
2027$14.4M$4.5M31%65%$782
2028 ★$20.6M$9.2M44%75%$876
2029$25.3M$12.1M48%80%$960
2030$29.9M$15.9M53%80%$1,079
2035$57.2M$33.8M59%80%$1,575

★ 2028 is the first clear conversion year. The operating approach is mechanical: fixed-cost absorption first, then volume, mix, and margin quality.

03Return Architecture — Investor Cash ($5M) Basis

Continue Case — Stay-In Through 2035

  • 100% preferred until 1.75× MOIC or 25% IRR hurdle
  • 20% continuing share retained post-hurdle
  • Distributions compound annually from 2026
  • Continue MOIC: 7.24×
  • Continue IRR: 71.6%
  • Favors investors with longer-duration preference

Buyout Case — Clean 2029 Exit

  • Continuing interest bought out at 2029
  • Buyout MOIC: 1.75×
  • Buyout IRR: 42.1%
  • Higher annualized speed vs. continue case
  • Favors investors wanting defined exit timeline

Both paths are anchored in actual distributions, not speculative platform assumptions. Returns are on $5M investor cash basis.

04Scenario Overlay
ScenarioContinue MOICContinue IRRBuyout MOICBuyout IRRMeaning
Downside1.47×9.7%1.33×12.1%Prototype delays, slower mix shift, higher reserve retention
Base7.24×71.6%1.75×42.1%Current approved workbook — governing figures
Upside1.98×18.3%1.67×22.1%Faster commercialization, earlier mix improvement

Base scenario returns are on $5M investor cash basis from the TCI Pro Forma V6. Downside/upside scenarios reference the supplement exhibit overlay on total-raise basis.

05Risk and Governance
RiskWhy It MattersMitigationResidual
Prototype TimingDelays push payback Year 3→4; most important near-term variableConservative scheduling; two prototypes; gated drawdownModerate
Revenue RampOperating cash depends on early conversionTCI-only focus; existing operator base; demand disciplineModerate
QC / Proof SystemQuality failure erodes commercial trust irreversiblyStop-ship authority; test cadence; NCR closure; bounded warrantiesLow–Mod
CapEx ControlOverruns reduce distributable cashReserve line; contingency; milestone-linked drawdownLow–Mod
Hurricane / SupplyIsland ops require built-in continuityInventory buffers; critical-spares matrix; continuity playbooksModerate

Governance: Board rights, reserved matters, weekly/monthly/quarterly reporting cadence, institutional-grade documentation from day one.

Contact & Inquiries

Jason Carter
Acrete Global Ltd.
Patrick Fleming
Acrete Global Ltd.
Acrete Global Ltd.
Advanced Concrete Solutions
Confidential. For authorized recipients only. All projections are forward-looking. Acrete Global Ltd.  ·  www.acreteglobal.com  ·  Investor Supplement 2Q26
Acrete Global Ltd.  ·  Investor Supplement 2Q26  ·  www.acreteglobal.comPhase 1 / TCI Only  ·  Confidential