Dear Cashmere Holding Company, operating as Matrix Fuels (OTC: DRCR), has filed its financial results for the first quarter of 2026, marking a significant step in its transition from technology and gaming to waste oil recycling. The company's Q1 filing reflects a repositioning phase that includes the spin-out of its technology and gaming assets into a separate entity, which is being prepared 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 available in the company’s SEC filings.
Under the spin-out plan, 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 management believes represents a compelling opportunity for value creation.
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, with incoming members bringing over 50 years of combined industry experience. Full operational momentum is 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.”
Link noted that operating gaming and technology businesses within an OTC-listed structure across multiple jurisdictions proved increasingly inefficient, with regulatory burdens and costs outweighing benefits. The company consistently traded at valuations below its intrinsic value, sometimes below its cash position. Spinning out these assets into a structure better suited for a major exchange listing is seen as the optimal path to achieving appropriate valuation for shareholders.
The board is committed to repositioning DRCR into a profitable, scalable sector that does not rely on excessive capital raising. Waste oil recycling meets these criteria, and the company is excited about opportunities ahead. Despite logistical challenges in the UAE due to regional geopolitical tensions, elevated global oil prices are expected to support strong margins. 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. The original press release is available on NewMediaWire.
