DRCR Files Q1 Financials, Advances Transition into Waste Oil Recycling

Dear Cashmere Holding Company, operating as Matrix Fuels (OTC: DRCR), has filed its first-quarter 2026 financial results, detailing the company's ongoing transition from technology and gaming into waste oil recycling. The filing marks a significant milestone as DRCR shifts its strategic focus toward recycling waste oil for energy and lubrication applications.

The Q1 2026 financials reflect the repositioning phase, including the spin-out of the company's 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. The transaction is recorded on DRCR's balance sheet at par value, with further details disclosed in the company's filings. 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 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 there can be no assurance the transaction will close, management remains highly optimistic about its completion in the near term. The company anticipates announcing a newly constituted board of directors shortly, bringing over 50 years of combined industry experience. Full operational momentum is 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. Similar to its previous business model, the company expects this new direction 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.”

Link further explained 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 to shareholders or management. The company consistently traded at valuations significantly below its intrinsic value, at times below its cash position. “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,” Link said. “At the same time, 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.”

Market outlook remains positive despite regional geopolitical tensions in the United Arab Emirates. Global oil prices remain elevated, and 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, the company directs investors to its website at www.matrix-fuels.com.