Core Structure
$5M investor cash + $5M sponsor in-kind contribution. No debt at launch. Sponsor contributes machinery, graphene inventory, trucks, and equipment at close. 20% investor stay-in after hurdle. Simple waterfall: 100% preferred until 1.75× MOIC or 25% IRR.
Phase 1 is a controllable proof investment: one market, one factory, two prototype projects, a clear capital stack, and a return profile driven by visible operating evidence.
Sources & Uses of Funds
Capital Story
Single Raise
$5M investor equity, staged deployment with milestone release
Reserve Capacity
$750K minimum cash reserve maintained throughout, designed in from day one
No Front-Loaded Debt
Factory refi modeled in 2028 after operating stability is proven
Milestone-Linked
Capital released against operating evidence, not time-based drawdown
The capital story is disciplined: one raise, staged deployment, later project debt, and explicit reserve capacity from the start.
Annual Financial Snapshot
| 2026 | 2027 | 2028 | 2030 | 2035 | |
|---|---|---|---|---|---|
| Revenue | $2.9M | $14.4M | $20.6M | $29.9M | $57.2M |
| EBITDA | ($4.3M) | ~$2.0M | $8.8M | $16.4M | $33.6M |
| Margin | Neg. | ~14% | ~43% | 54.8% | 58.7% |
| Utilization | ~15% | ~65% | ~75% | ~78% | ~80% |
2028 Conversion Year
$20.6M revenue, $8.8M EBITDA, the first clear proof of the operating model
Negative Year 1 Is Deliberate
Honest accounting, not a flaw. The ramp is mechanical, not promotional.
Factory Refi in 2028
Modeled after operating stability is proven, not before
$33M+ by 2035
Factory product revenue driven by fixed-cost absorption, volume, mix, and margin quality
The operating approach is mechanical rather than promotional: fixed-cost absorption first, then volume, mix, and margin quality.
Island construction is structurally overpriced and underperforming. Three compounding burdens that Acrete is built to solve.
01 · Delivered-Cost Friction
- Import timing, freight, and inventory drag inflate delivered cost
- Port handling and schedule volatility add working-capital pressure
- Island markets overpay for every ton of heavy material
- The burden is structural, not cyclical
Response: Local production + logistics control
02 · Marine Durability Failure
- Salt, chloride-driven corrosion, and crack-control failure
- Premature repair cycles and reduced asset life
- Standard reinforced concrete underperforms in marine exposure
- Lifecycle repair burden is compounding, not one-time
Response: Marine-grade mixes + non-corrosive reinforcement
03 · Energy / Labor / Water Burden
- High electricity costs amplify weak thermal performance
- Labor intensity and heat exposure compound operating cost
- Water constraint is a real limiting factor in island builds
- The winner reduces total burden, not just first cost
Response: Panels, durable envelopes, future energy optionality
Acrete is not entering a commodity market. It is entering a market where reliability, performance, and proof command a premium.
The Value Bridge
Acrete converts performance into economics, not just chemistry.
The Material Advantage: BioCene Graphene + Basalt
100× Stronger
- Higher tensile + compressive strength vs. conventional mixes
25% Lighter
- More durable under sustained structural and dynamic load
Lower Permeability
- Superior resistance to water and chloride in marine exposure
Lower CO₂
- Reduced cement intensity, meaningful embodied-carbon advantage
Fire + Chemical Resistant
- Maintains structural integrity under extreme conditions
Thermal Performance
- Superior conductivity for building-envelope applications
The moat is not a single admixture claim. It is the repeatable system that makes better concrete financeable.
The Phase 1 product ladder. Deliberately simple, sellable, and expandable: dependable before broad.
| Tier | Product | Description |
|---|---|---|
| Phase 1 | Ready-Mix / On-Site Pour | Establishes utilization and operating rhythm; the recurring earnings floor |
| Bagged Lines | Packaged dry mixes and specialty repair mortars, expands trade-channel reach | |
| Phase 2+ | Panels & Pads | Higher-margin engineered outputs once operating system proves itself; compresses labor dependence |
| Specialty Products | Cisterns, island-specific forms, foundation elements for targeted island needs | |
| Technical Services | Proof Packs & Documentation | Engineer-facing evidence tools that reduce approval friction and enable premium pricing |
| Bounded Warranty | Makes performance claims financeable for lenders, engineers, and insurers | |
| Future Optional | Structural Energy Storage | Graphene-concrete "structural power," long-range concept, explicitly outside Phase 1 base case |
| Advanced Precast | Broader engineered systems as the platform matures beyond Phase 1 |
Phase 1 wins by being dependable before it tries to be broad. The product ladder is earned, not assumed.
Small enough to control, large enough to prove, painful enough to matter.
Visible Market
- Small enough to control, large enough to prove
- ~$220M construction market proxy with concentrated demand from hospitality, housing, and infrastructure
Real Import Pain
- Freight, scheduling, and inventory costs are acute
- Delivered-cost friction is structurally embedded, not a temporary condition
Marine Exposure
- Durability failure is economically relevant
- Chloride exposure, corrosion cycles, and lifecycle repair costs create genuine premium value
Investor Legibility
- One geography, one plan, one core story
- The underwriting stays focused, not diffuse across speculative multi-market expansion
Phase 1 is built around a local operating partner in TCI: North Caicos Contracting Ltd. This is not a cold start.
Why This Partnership De-Risks Phase 1
Cold Start Eliminated
Institutionalizing an existing local operator is materially lower risk than building from scratch in an unfamiliar island market.
Machinery & Equipment at Close
$5M in-kind contribution: batching equipment, trucks, logistics assets. Reduces cash burn and speeds commissioning.
Graphene Inventory Pre-Positioned
Specialist materials in the supply chain from day one, reducing lead-time risk and launch friction.
Relationship Density
20+ years of TCI contractor relationships compresses the anchor-account development cycle significantly.
Institutionalizing an existing local operator is materially lower risk than inventing one from scratch.
An integrated control system, not just a plant build. Plant, dispatch, QC, inventory, and PMO operating as one system.
Factory & Production
- Automated batching with set-point control
- Variance monitoring and release discipline
- 30,000 CY annual capacity at full utilization
- ~15% utilization in 2026 → ~75% by 2028
QC & Proof System
- Test cadence and acceptance thresholds
- Traceability per batch, full documentation
- Stop-ship authority for NCR events
- Proof packs completed for every reference job
Supply Chain & Inventory
- Local aggregates sourced where feasible
- Cementitious inputs on contracted supply
- Critical-spares matrix protects uptime
- Inventory buffers sized to island interruption risk
PMO & Reporting
- Daily huddle → weekly KPI → monthly board
- Milestone-linked capital release
- Reserved matters requiring board approval
- Quarterly investor dashboard, institutional-grade
Stage gates and operating rhythm are what keep the Phase 1 story investable rather than aspirational.
Continue vs. Buyout: two transparent paths, anchored in actual distributions, not grand plans.
Continue Case — Stay-in Through 2035
- 100% preferred until 1.75× MOIC or 25% IRR hurdle
- Priority distributions: $12.05M in 2028, $6.08M in 2029
- 20% continuing share post-hurdle through 2035
- Favors investors with longer-duration preference
Buyout Case — Clean 2029 Exit
- Continuing interest bought out off 2030 EBITDA reference
- Multiple and haircut logic already in the workbook
- Final MOIC: 1.78× on invested capital
- Favors investors wanting a defined exit timeline
Payback Timeline
Risk is real and manageable. Mitigation is built in, not bolted on as an afterthought.
| Risk | What Can Go Wrong | Mitigation | Residual |
|---|---|---|---|
| Prototype Timing | Delays push payback Year 3 → Year 4 | Conservative scheduling; two prototypes, not one | Moderate |
| Revenue Ramp | Operating cash depends on early conversion | TCI-only focus; existing operator base; demand-stack discipline | Moderate |
| QC / Proof System | Quality failure erodes commercial trust irreversibly | Stop-ship authority; testing cadence; NCR closure; bounded warranties | Low–Moderate |
| CapEx Control | First-wave overruns reduce distributable cash | Reserve line; contingency; milestone-linked drawdown | Low–Moderate |
| Supply Chain | Port delay or material disruption threatens production | Dual sourcing; inventory buffers; critical-spares matrix | Moderate |
| Hurricane / Weather | Island operations require built-in continuity plans | Insurance; hardening protocols; emergency restart playbooks | Moderate |
Governance Controls
The investment case for Phase 1 is valid because scope, controls, and cash logic are all legible.
Why This Is Investable
- Visible use of proceeds and disciplined draw schedule
- Real local operating base and established proof market
- Identifiable early cash events with strong downside controls
- Bahamas becomes the first Phase 2 replication market
- Regional expansion follows only if Phase 1 works
Structural Advantages
- Single-market underwriting
- Tightly bounded capital raise
- No debt, strong balance sheet
- Operating proof before replication
- Institutional governance from day one
- Transparent return architecture