Dear Cashmere Holding Company, operating as Matrix Fuels (OTC: DRCR), has filed its financial results for the first quarter of 2026, marking a significant transition in the Company’s strategic direction toward the recycling of waste oil for energy and lubrication applications. The filing reflects a repositioning phase that includes the spin-out of its technology and gaming assets into a newly formed entity, which is being prepared for a potential initial public offering on a major U.S. exchange at an appropriate time.
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 the Company believes represents a compelling opportunity for shareholder value creation. The transaction is reflected on DRCR’s balance sheet at par value, with further details disclosed in the Company’s 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 successfully completed due diligence and negotiations and is currently 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. The incoming board will bring over 50 years of combined industry experience and is expected to guide the Company into its next phase of growth, 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.” 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 any tangible benefit. 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. Attempting to unlock that value within the OTC framework was unnecessarily cumbersome,” 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, and we are excited about the opportunities ahead.”
While the United Arab Emirates is currently 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.
For further information, visit the Company’s website at www.matrix-fuels.com.
