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. This dual-track approach aims to unlock shareholder value through both the new environmentally-focused business and continued participation in the technology sector.
The company's management recently completed a restructuring that transferred its legacy technology operations into a newly formed entity expected to pursue an IPO next year. Existing DRCR shareholders are anticipated to receive shares in the IPO company while maintaining their current DRCR holdings. To facilitate shareholder participation, DRCR plans to launch a dedicated website where investors can register for additional information about the IPO process. The company will announce the website launch through press releases and social media channels.
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.
Geopolitical tensions continue to pressure energy markets and global supply chains, while accelerating automation, logistics, electrification, and increased power demand from data centers and artificial intelligence require reliable fuel oils. Nicolas Link, Chairman of DRCR, stated that while green energy remains a parallel focus globally, oil is likely to continue dominating the energy sector in the medium term. "It makes common sense to recycle this 'black gold,' which exists in abundance as toxic waste causing environmental problems worldwide," Link said. "It is a win-win to collect, recycle, blend, and return these oils to the market as new products."
To enter the sector, DRCR intends to acquire an established, licensed, and profitable waste oil and lubricant refinery located in Dubai. The target business operates with an experienced management team expected to play a significant role in DRCR's new operations. Due diligence has been completed and principal terms negotiated, with closing anticipated in late first quarter or early second quarter, subject to customary processes and conditions. Additional transaction details will be announced in coming weeks.
James Gibbons, current Chief Executive Officer of DRCR, commented that his involvement has focused on supporting the evaluation and potential separation of the company's legacy technology assets to preserve shareholder value. "Any separation, transaction, or potential public listing is subject to market conditions, regulatory requirements, and the discretion of the Company's board," 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 are expected to benefit from the new waste oil recycling business and potential participation in the technology business IPO. Investors can monitor the company's stock information through https://www.otcmarkets.com/stock/DRCR/profile.
