Dear Cashmere Holding Company, operating as Matrix Fuels (OTC: DRCR), has filed its financial results for the first quarter of 2026, marking a significant strategic shift toward the recycling of waste oil for energy and lubrication applications. The filing reflects a repositioning phase that includes the spin-out of the Company's technology and gaming assets into a new entity, which is being prepared for a potential initial public offering on a major U.S. exchange.
Equity in the new technology company is expected to be issued to shareholders of record as of December 31, 2025. Shareholders will be contacted with instructions regarding the issuance, which management believes represents a compelling opportunity for value creation. The transaction is reflected on DRCR's balance sheet at par value, with further details available in the Company's SEC filings.
As part of its strategic pivot, DRCR is advancing toward the acquisition of a waste oil recycling facility in the United Arab Emirates. The Company has completed due diligence and negotiations and is finalizing contractual documentation. While there can be no assurance the transaction will close, management remains highly optimistic about its completion in the near term. The Company anticipates announcing a newly constituted board of directors shortly, bringing over 50 years of combined industry experience, with full operational momentum targeted by the third quarter of 2026.
Looking ahead, DRCR believes it is well positioned to generate strong future cash flows and profitability through its entry into the waste oil recycling sector. Similar to its previous business model, the Company expects this new direction to be relatively low in capital intensity while offering scalable, cash-generative opportunities.
Nicolas Link, Chairman of DRCR, stated: "We are thrilled with the progress we have made in repositioning the Company and the outcome of our negotiations and due diligence regarding the UAE acquisition. Quarter 2 has been focused on executing this transition and preparing the Company for a strong acceleration into Quarter 3." Link added that operating gaming and technology businesses within an OTC-listed structure across multiple jurisdictions proved increasingly inefficient, with regulatory burdens and costs outweighing any tangible benefit. He noted that the Company consistently traded at valuations significantly below its intrinsic value, at times below its cash position.
"We believe spinning out these assets into a structure better suited for a major exchange listing provides the optimal pathway to achieving appropriate valuation for shareholders," Link said. "Attempting to unlock that value within the OTC framework was unnecessarily cumbersome. At the same time, the Board was committed to repositioning DRCR into a sector that is profitable, scalable, and not reliant on excessive capital raising. Waste oil recycling meets these criteria, and we are excited about the opportunities ahead."
Market Outlook: While the UAE is experiencing certain logistical challenges due to regional geopolitical tensions, global oil prices remain elevated. The Company expects these pricing dynamics to support strong margins, offsetting logistical complexities. DRCR intends to replicate its waste oil recycling model in additional markets, including Europe and the United States, throughout 2026 and 2027, subject to market conditions and successful execution of its initial operations.
