Dear Cashmere Holding Company, operating as Matrix Fuels (OTC: DRCR), has filed its financial results for the first quarter of 2026, marking a strategic shift toward the recycling of waste oil for energy and lubrication applications. The company, an emerging diversified holding company, announced the filing on May 21, 2026, alongside updates on its transition.
The Q1 2026 financials reflect a repositioning phase that includes the spin-out of its technology and gaming assets into a newly formed entity. This new company 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.
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 there can be no assurance the transaction will close, management remains highly optimistic about its completion in the near term.
DRCR 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, which the company expects 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. Over several years, the company consistently traded at valuations significantly below its intrinsic value, at times below its cash position. Link noted, “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.”
Regarding market outlook, while the UAE is currently experiencing 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. The original press release can be viewed on NewMediaWire.
