Aduro Clean Technologies (ACT) Registration filing summary

Company overview and business model

• Early-stage Ontario-based clean technology company focused on chemical recycling via its proprietary Hydrochemolytic™ Technology platform, targeting plastics upcycling, bitumen upgrading, and renewables upgrading.

• Business model centers on licensing, royalties, and R&D, with ongoing evaluation of direct operation and joint ventures.

• Technology transforms low-value feedstocks into higher-value chemical feedstocks and fuels, protected by ten patents (seven granted, three pending).

• Commercialization strategy involves demonstration projects and partnerships, with a focus on integrating technology into existing infrastructure.

• Currently scaling up technology with the NGP Pilot Plant and planning a demonstration plant, aiming for commercial deployment.

Financial performance and metrics

• Negative cash flows from operating activities: $(8,983,851) for the year ended May 31, 2025, and $(2,604,622) for the three months ended August 31, 2025.

• Anticipates continued negative cash flows from operations in future periods.

• Research and development activities are a significant expense, with more than 10% of net proceeds from offerings potentially allocated to R&D.

Use of proceeds and capital allocation

• Net proceeds from offerings may fund negative operating cash flows, R&D, demonstration plant construction, and general corporate purposes.

• Actual use of proceeds may differ from intended allocations based on operational needs and available cash resources.

• Major costs for the NGP Pilot Plant ($4.1M) have been incurred using cash on hand; demonstration plant costs to be incurred in early 2026.

• Planned milestones over the next 12–24 months include commissioning the NGP Pilot Plant, completing demonstration plant design, and expanding customer engagement.