CirChem (CIRCHE) Status Update summary

Business overview and market position

• Operates the only commercial-scale solvent recycling facility in the Nordics, handling up to 20,000 tons of hazardous waste annually.

• Focuses on circular chemistry and economy, optimizing solvent value and reducing CO2 emissions by recycling instead of incineration.

• Supplies recycled solvents to both original waste producers and the broader chemical market, acting as a key chemical supplier.

• Established strong partnerships with major waste handlers and chemical distributors, including Stena Recycling, Tita Pack, and Swedhandling.

• Recently secured its largest-ever order, demonstrating scalability and market credibility.

Growth, financials, and strategic direction

• Achieved an 80% increase in Q1 revenue, reflecting strong demand and successful contract execution.

• Transitioned from development to commercialization after obtaining environmental permits in 2022, with revenue growth accelerating since.

• Growth is driven by both linear and circular flows, with expectations of continued annual expansion despite quarterly fluctuations.

• Ongoing projects include closed-loop recycling for automotive, paint, and defense industries, with support from EU and Swedish agencies.

• Actively expanding capacity and customer base, with numerous advanced commercial discussions underway.

Customer relationships and contract structure

• Secured long-term (3+ years) closed-loop contracts with major industrial clients, including a global automotive manufacturer.

• Acts as a trusted partner and advisor, with high customer retention and increasing market recognition.

• Entry into new industries is validated by initial contracts, leading to further opportunities within those sectors.

• High stickiness and recurring revenue expected from closed-loop agreements.