DRCR, formerly Dear Cashmere Holding Company, has initiated a strategic shift into the waste oil recycling industry while simultaneously preparing its legacy technology business for a potential initial public offering in 2026. The company announced the rollout of a new business model designed to unlock shareholder value and achieve sustainable, cash-flow-positive growth.
The restructuring involves transferring DRCR's legacy technology operations into a newly formed company expected to pursue an IPO next year. Existing DRCR shareholders are anticipated to receive shares in the IPO entity while maintaining their current holdings. To facilitate shareholder participation, DRCR plans to launch a dedicated website where investors can register for information about the IPO process, with notifications to be provided through press releases and social media channels when the site becomes available.
Concurrently, DRCR is transitioning into the waste oil recycling sector, citing both environmental responsibility and economic opportunity. The global waste oil recycling market is estimated to exceed $8 billion, driven by industrialization, environmental regulation, and energy demand. More than 50 million metric tons of waste oil is generated annually worldwide, with significant portions improperly disposed of. Re-refining waste oil into base and fuel oil can deliver attractive margins while addressing environmental challenges.
"While green energy is a parallel focus globally, fundamentally oil is likely to continue to dominate the energy sector during our lifetime and most definitely in the medium term," said Nicolas Link, Chairman of DRCR. "It makes common sense to recycle this 'black gold,' which exists in abundance as toxic waste causing environmental problems worldwide. It is a win-win to collect, recycle, blend, and return these oils to the market as new products."
DRCR intends to enter the sector by acquiring an established, licensed, and profitable waste oil and lubricant refinery located in Dubai. Due diligence has been completed and principal terms negotiated, with closing expected in late first quarter or early second quarter, subject to customary conditions. The target business is operated by an experienced management team expected to play a significant role in DRCR's new operations.
James Gibbons, current Chief Executive Officer of DRCR, commented on the transition: "My involvement during this period has been focused on supporting the evaluation and potential separation of the Company's legacy technology assets, with the goal of preserving shareholder value and maintaining continuity where practicable." Gibbons anticipates transitioning out of executive management while remaining a significant shareholder as DRCR moves into its new operating sector.
The company's stock information is available through OTC Markets. DRCR believes the coming months will be transformative for the company and its shareholders, who are expected to benefit from both the new waste oil recycling business and participation in the anticipated technology business IPO.
