Aduro Clean Technologies (ACT) Registration filing summary

Company overview and business model

• Early-stage clean technology company focused on chemical recycling of plastics, bitumen upgrading, and renewables upgrading, with a proprietary Hydrochemolytic™ Technology platform and eight patents (seven granted, one pending).

• Business model centers on licensing, royalties, and R&D, with ongoing evaluation of alternative models to maximize stakeholder value.

• Commercialization strategy relies on demonstration projects and a Customer Engagement Program to build partnerships and validate technology.

• Operations are based in Canada and the Netherlands, with a subsidiary established in Europe to support regional growth.

• Target markets include plastics upcycling, bitumen upgrading, and renewables upgrading, with potential customers ranging from refineries to waste management companies and biofuel producers.

Financial performance and metrics

• For the nine months ended February 29, 2024: revenue of $235,266, net loss of $5,675,164, and cash and cash equivalents of $2,156,359.

• For the year ended May 31, 2023: revenue of $109,629, net loss of $5,863,317, and accumulated deficit of $15,459,215.

• Working capital as of February 29, 2024 was $2,490,664, down from $4,386,363 as of May 31, 2023.

• Company has not achieved profitability and expects continued negative cash flow from operations until commercialization.

• Financing activities in the last year included private placements and warrant/option exercises, raising over $5 million.

Use of proceeds and capital allocation

• Net proceeds from the IPO will be used for R&D ($500,000–$1,000,000), construction of a semi-commercial pilot unit ($3,650,000–$4,150,000), and general corporate purposes.

• Management has broad discretion over the use of proceeds, with anticipated sufficiency for proposed projects over the next 12 months.