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 recycling waste oil for energy and lubrication applications. The company is repositioning itself after spinning out its technology and gaming assets into a new entity, which is being prepared for a potential initial public offering on a major U.S. exchange.
The Q1 2026 financials reflect this repositioning, with the spin-out recorded on the 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. DRCR believes this spin-off will unlock 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. Due diligence and negotiations have been completed, and the company is finalizing contractual documentation. While there is no guarantee the transaction will close, management is optimistic about completion in the near term.
The company also plans to announce a newly constituted board of directors shortly, bringing over 50 years of combined industry experience to guide its next growth phase. Full operational momentum is targeted by the third quarter of 2026.
Chairman Nicolas Link 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 proved inefficient, and the spin-out provides a better pathway to valuation.
From a market perspective, global oil prices remain elevated, which DRCR expects to support strong margins despite logistical challenges in the UAE due to regional geopolitical tensions. The company intends to replicate its waste oil recycling model in Europe and the United States throughout 2026 and 2027, subject to market conditions.
DRCR believes its new direction offers low capital intensity and scalable, cash-generative opportunities. The company expects to generate strong future cash flows and profitability through its entry into the waste oil recycling sector.
For more information, visit the company's website at www.matrix-fuels.com or contact investor relations via the company's X (Twitter) account at @matrixfuels.
