DRCR, formerly Dear Cashmere Holding Company, has initiated a comprehensive business model transformation designed to unlock shareholder value and establish sustainable cash-flow-positive operations. The company recently completed a strategic restructuring that separates its legacy technology business into a new entity expected to pursue an initial public offering in 2026. Existing DRCR shareholders are anticipated to receive shares in the IPO company while maintaining their current DRCR holdings.
To facilitate shareholder participation in this process, DRCR plans to launch a dedicated website where shareholders can register and access additional information about the IPO. The company will announce the website launch through press releases and social media notifications. More information about the company's stock profile is available at https://www.otcmarkets.com/stock/DRCR/profile.
Concurrently with this separation, DRCR is transitioning into the waste oil recycling sector, a market estimated to exceed $8 billion globally. The company cites both environmental responsibility and economic opportunity as driving factors, noting that more than 50 million metric tons of waste oil is generated annually worldwide, with significant portions improperly disposed of. Recycling mineral waste oil back into base oil, fuel oil, and lubricants presents attractive margins while addressing environmental challenges.
Nicolas Link, Chairman of DRCR, emphasized the strategic rationale behind this move. "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," Link stated. "It makes common sense to recycle this 'black gold,' which exists in abundance as toxic waste causing environmental problems worldwide. In some cases, we are paid to remove the waste oil and then reprocess and sell it again - effectively having two bites of the apple."
The company identified several market drivers supporting this strategic shift, including geopolitical tensions affecting energy markets, accelerating automation, logistics demands, electrification trends, and increased power requirements from data centers and artificial intelligence applications that require reliable fuel oils.
To enter the waste oil recycling sector, DRCR intends to acquire an established, licensed, and profitable refinery located in Dubai. Due diligence has been completed and principal terms negotiated, with the transaction expected to close in late first quarter or early second quarter, subject to customary conditions. The target business operates with 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 period. "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 stated. He anticipates transitioning out of executive management while continuing as a significant shareholder as DRCR moves into its new operating sector.
The company believes the coming months will be transformative for both DRCR and its shareholders, who stand to benefit from participation in the waste oil recycling business and the anticipated technology unit IPO. This dual approach represents a significant strategic pivot for a company that previously operated successfully in the online gaming market, now positioning itself at the intersection of environmental sustainability and energy market demands.
