Production for new model automobiles begins a year and a half before the release, usually in June/July. The average time to get a facility GMP certified is 6 months. Carbon credit certification is 6-9 months.
All those timelines work for "ramping up operations".
Stellantis rolled out plans for almost 100 new EV models beginning in 2025. Isiah stated that the anticipated raw material needed would be 30,000 tonnes by 2025 for Stellantis alone. A couple of things caught my attention with Stellantis' announcement. One was that the vehicles would be 25% lighter. Hemp plastics are lighter by that percentage but even more so when replacing carbon fiber with hemp fiber which can be as much as 40% lighter, this while actually increasing strength. The other statement was that the production materials would be sourced from sustainable materials.
Thomas stated that the carbon credits were coming from the same companies that OWP would be supplying. He mentioned Stellantis but also Ford and Chevy before that. Then there was this statement, which almost sounds to good to be true...
"Add these facts with our natural ability to cultivate three harvests per year in Colombia, we are very excited about the future of our Company and improving the lives of millions of Afro-Colombians and indigenous peoples," added Mr. Thomas. "As we continue to scale our operations in-country, we estimate that we should generate hundreds of millions of dollars of revenue per year from the sale of our carbon credits, excluding any revenue generated from actual sales of hemp products to customers."
Almost to good to be true but actually feasible with the amount of land they now control combined with the current value of carbon credits.
A company like Stellantis kills 2 birds with a company like OWP. They can meet EU carbon regulations while also getting what would no doubt be a good price on materials.
They are going to need substantial capital to get this going. I don't see Isiah using this S-1 as the source for start-up capital, not at these prices. The price set on the preliminary S-1 is in agreement, set at over .50. They have been way too protective of the share structure to implement at this level, IMO.
My guess is that we are going to see some action on the carbon credit front before an operational ramp up which I do think will be within a month and a half.
