Dear Cashmere Holding Company, also known 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 the Company's repositioning, including the spin-out of its technology and gaming assets into a new entity being prepared for a potential initial public offering on a major U.S. exchange.
The Q1 2026 financials show the spin-out transaction recorded on DRCR's balance sheet at par value, with further details disclosed in the Company's SEC filings. Equity in the new technology company is expected to be issued to shareholders of record as of December 31, 2025, with instructions to follow. Management believes this spin-out will unlock shareholder value that was previously constrained by the OTC listing structure.
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 no assurance can be given that the transaction will close, management remains 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 to guide the next growth phase, with operational momentum targeted by the third quarter of 2026.
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." He added that operating gaming and technology businesses within an OTC-listed structure across multiple jurisdictions proved increasingly inefficient, with regulatory burdens and costs outweighing benefits. "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."
Looking ahead, DRCR expects the waste oil recycling sector to offer low capital intensity and scalable, cash-generative opportunities. The Company anticipates strong future cash flows and profitability, supported by elevated global oil prices. While the UAE faces logistical challenges due to regional geopolitical tensions, management expects pricing dynamics to support strong margins. DRCR intends to replicate its waste oil recycling model in Europe and the United States during 2026 and 2027, subject to market conditions and successful execution of initial operations.
For further information, visit the Company's website at www.matrix-fuels.com.
