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 licensing, royalties, and R&D as primary revenue streams.

• Business model emphasizes licensing to reduce capital needs and accelerate commercialization, with ongoing evaluation of alternative models.

• Engages in demonstration projects and customer engagement programs to validate technology and build commercial partnerships.

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

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 as of May 31, 2024: $2,814,576; working capital: $3,200,274.

• Operating expenses increased due to higher R&D and general administrative costs, reflecting scale-up and personnel growth.

• Negative operating cash flow expected to continue until commercialization or revenue exceeds expenses.

• Subsequent private placement and warrant/option exercises post-May 2024 raised an additional $5.36 million.

Use of proceeds and capital allocation

• Net proceeds of approximately US$5 million (up to US$5.75 million if over-allotment exercised) expected from the IPO.

• Planned allocation: US$500,000–1,000,000 for R&D, US$3,650,000–4,150,000 for construction of a semi-commercial pilot, remainder for general corporate purposes and working capital.

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