DRCR Transitions to Waste Oil Recycling Business While Preparing Technology Unit for IPO

DRCR has initiated the rollout of a new business model focused on transitioning into the waste oil recycling industry while preparing its legacy technology operations for a potential initial public offering. The company, which recently completed a strategic restructuring, aims to unlock shareholder value by separating its technology assets into a new entity expected to pursue an IPO in 2026. Existing DRCR shareholders are anticipated to receive shares in the IPO company while maintaining their current holdings, with the company planning to launch a dedicated website for shareholder information regarding the process.

The transition into waste oil recycling represents a significant strategic shift for the company, driven by both environmental and economic considerations. Recycling mineral waste oil back into base oil, fuel oil, and lubricants addresses a global environmental challenge while tapping into a market estimated to exceed $8 billion. With more than 50 million metric tons of waste oil generated annually worldwide, much of which is improperly disposed of, the company sees substantial opportunity in this sector. Geopolitical tensions affecting energy markets and increasing demand from automation, logistics, electrification, and data centers further underscore the need for reliable fuel oils.

Nicolas Link, Chairman of DRCR, emphasized the strategic rationale behind the move, stating that while green energy remains important, oil will likely continue dominating the energy sector in the medium term. The company plans to acquire an established, licensed, and profitable waste oil and lubricant refinery located in Dubai, with due diligence completed and principal terms negotiated. While there can be no assurance the transaction will close, the parties have been working toward completion for several months, with closing expected in late first quarter or early second quarter subject to customary conditions.

James Gibbons, current Chief Executive Officer of DRCR, noted his involvement has focused on evaluating and potentially separating the company's legacy technology assets to preserve shareholder value. He anticipates transitioning out of executive management while remaining a significant shareholder as the company moves into its new operating sector. Additional details regarding the transaction, including board changes and operational structure, will be announced in coming weeks. The company believes the coming months will be transformative for both the company and its shareholders, who stand to benefit from both the new waste oil recycling business and participation in the anticipated technology business IPO. For current stock information, investors can visit the company's profile page on OTC Markets.