Dear Cashmere Holding Company, doing business as Matrix Fuels (OTC: DRCR), has filed its financial results for the first quarter of 2026, providing a detailed look at its transition into the waste oil recycling sector. The filing marks a significant repositioning for the company, which is spinning out its technology and gaming assets into a newly formed entity targeted for a potential initial public offering on a major U.S. exchange.
The Q1 2026 financials reflect the spin-out, with the transaction recorded on DRCR's balance sheet at par value. Equity in the new technology company is expected to be issued to shareholders of record as of December 31, 2025. The company believes this move will unlock shareholder value, noting that operating gaming and tech businesses within an OTC-listed structure across multiple jurisdictions proved inefficient, with regulatory burdens and costs outweighing benefits.
Chairman Nicolas Link stated, “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.” He added that the company traded at valuations significantly below intrinsic value, at times below its cash position.
Simultaneously, DRCR is advancing toward acquiring a waste oil recycling facility in the United Arab Emirates. Due diligence and negotiations are complete, and contractual documentation is being finalized. While there is no assurance the deal will close, management remains optimistic about completion in the near term. The company intends to replicate this model in Europe and the United States throughout 2026 and 2027, subject to market conditions.
DRCR also announced plans to appoint a new board of directors with over 50 years of combined industry experience, targeting full operational momentum by the third quarter of 2026. The company expects the waste oil recycling sector to be relatively low in capital intensity while offering scalable, cash-generative opportunities. Global oil prices remain elevated, which the company believes will support strong margins despite logistical challenges from regional geopolitical tensions.
Link commented, “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.” The company believes it is well-positioned to generate strong future cash flows and profitability through this new direction.
For more information, visit the company's website at www.matrix-fuels.com.
