Dear Cashmere Holding Company, operating as Matrix Fuels (OTC: DRCR), has filed its first quarter 2026 financial results, marking a pivotal shift in its corporate strategy toward waste oil recycling. The Q1 filing reflects the repositioning phase, including the spin-out of its technology and gaming assets into a new entity poised for a potential initial public offering on a major U.S. exchange. This transaction is recorded on DRCR’s balance sheet at par value, with additional details in the Company’s filings.
Equity in the new technology company is expected to be distributed to DRCR shareholders of record as of December 31, 2025. Shareholders will receive instructions regarding the issuance, which the Company believes represents a compelling opportunity for value creation.
As part of its strategic pivot, DRCR is advancing toward acquiring a waste oil recycling facility in the United Arab Emirates. Due diligence and negotiations have been completed, and contractual documentation is being finalized. While no assurance can be given that 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. The incoming board brings over 50 years of combined industry experience and is expected to guide DRCR into its next growth phase, 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 benefits. Over several years, 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. “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.”
Market Outlook: While the UAE faces 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.
For further information, visit the Company’s website at www.matrix-fuels.com or follow on X (Twitter) at matrixfuels.
