Aduro Clean Technologies (ACT) Registration filing summary

Company overview and business model

• Early-stage clean technology company focused on chemical recycling via Hydrochemolytic™ Technology for plastics upcycling, bitumen upgrading, and renewables upgrading.

• Owns eight patents (seven granted, one pending) and targets a licensing, royalties, and R&D-driven business model, with ongoing evaluation of alternative models.

• Commercialization strategy centers on demonstration projects and early-stage customer engagement to build partnerships and validate technology.

• Operations are based in Canada and the Netherlands, with pilot and laboratory facilities supporting R&D and customer trials.

• Key applications include plastics upcycling, bitumen upgrading, and renewable oil conversion, targeting integration with existing industrial infrastructure.

Financial performance and metrics

• Fiscal year ended May 31, 2024: revenue of $337,516, net loss of $7,436,861, and accumulated deficit of $22,896,076.

• Cash and cash equivalents at year-end: $2,814,576; working capital: $3,200,274; total assets: $6,956,751.

• Operating expenses increased to $6,292,435, with R&D expenses at $2,681,947 and general/admin at $3,155,845.

• Raised $5,345,848 from warrant and option exercises in FY2024; completed a $3.38M private placement in June 2024.

• Company expects continued negative cash flow from operations until commercialization or sufficient revenue generation.

Use of proceeds and capital allocation

• Estimated net proceeds of US$5M (up to US$5.75M with full over-allotment) from the IPO.

• Planned allocation: US$500K–$1M for R&D, US$3.65M–$4.15M for construction of a semi-commercial pilot unit, remainder for general corporate purposes and working capital.

• Management retains broad discretion over timing and application of proceeds.