Featured Investment: D5-Aduro Clean Technologies

From a Sarnia, Ontario lab to NASDAQ listing, our partnership with Aduro exemplifies our milestone-driven approach to unlocking value in cleantech.

Background

Aduro Clean Technologies is a Canadian cleantech company pioneering advanced chemical recycling processes to address the global plastic waste crisis and the demand for sustainable fuels and chemicals. Its proprietary Hydrochemolytic™ Technology transforms hard-to-recycle plastics—such as polyethylene, polypropylene, and polystyrene—and heavy crude oils into high-value products like diesel, jet fuel, and specialty chemicals. Unlike traditional recycling methods, which often degrade material quality, Aduro’s process preserves molecular integrity, enabling a circular economy where waste is converted into valuable resources with lower carbon emissions. Aduro’s technology development was significantly advanced through a collaboration with Dr. Paul Charpentier, a leading researcher in chemical engineering at Western University in London, Ontario. Dr. Charpentier’s expertise in nanotechnology and sustainable chemical processes helped refine Aduro’s Hydrochemolytic™ platform, enhancing its efficiency and scalability for industrial applications.

The global plastic waste problem is staggering: over 350 million tons of plastic are produced annually, with less than 10% recycled effectively, according to the OECD. Meanwhile, the market for sustainable fuels and chemicals is projected to grow significantly, with the global chemical recycling market expected to reach $14 billion by 2030. Aduro’s technology positions it to capture a share of this market while addressing environmental challenges like plastic pollution and reliance on fossil fuels.

When we initially engaged with Aduro through the acquisition company Dimension Five (D5), Aduro was an early-stage innovator with a promising but unproven technology. Operating in a capital-intensive cleantech industry, Aduro faced significant hurdles: validating its technology, scaling operations, and attracting the necessary funding. D5’s role, led by Chris Parr was to design a capital markets strategy that balanced investor protection against execution risks, preserved management’s equity upside, and paved a credible path toward increased funding both retail and institutional to help set the stage for future uplistings. As CEO of the acquisition company, Chris Parr worked directly with Aduro founder and CEO to create a transaction that accomplished these goals and generated value for shareholders on both sides.

The Challenge

Aduro’s Hydrochemolytic™ Technology had transformative potential in the $14 billion chemical recycling market, but as a cleantech startup, it faced unique risks: unproven scalability, regulatory uncertainties in waste management, and skepticism from investors accustomed to volatile cleantech ventures. Early investors needed protection from execution risk, while management required sufficient equity to stay motivated through a long development cycle. Raising too high risked credibility with investors; raising too low risked excessive dilution for management. Our goal was to design a structure that:

  • Reduced downside risk for investors
  • Preserved upside participation for Aduro management and shareholders
  • Positioned the company for progressive capital raises and uplistings

Our Approach

We designed a performance-based milestone structure tailored to the cleantech sector’s high capital needs and long validation timelines:

  • Class A Special Warrants: Converted upon successful validation of Aduro’s Hydrochemolytic™ showroom unit—a critical proof-of-concept for chemical recycling efficacy—by an independent expert (First Milestone, 2 years).
  • Class B Special Warrants: Converted upon major commercial or financing achievements, such as institutional investment, licensing deals, valuation thresholds, or a significant capital raise (Second Milestone, 4 years).

This structure aligned investors and management, rewarding execution while mitigating risks inherent in scaling innovative cleantech solutions.

Execution & Milestones

  • 2020–2021: Completed three private placements totaling over $3 million at pre-money valuations under $10 million, fueling technology development and pilot testing– drawing on Dr. Paul Charpentier’s chemical engineering expertise at Western University to optimize the Hydrochemolytic™ process for plastic waste upcycling and real-world scalability.
  • April 2021: Closed reverse takeover with Dimension Five, listing on the Canadian Securities Exchange and unlocking broader investor access.
  • First Milestone Achieved: Independent validation of the showroom unit by Dr. Charpentier, proving >90% efficiency in converting mixed plastic waste to premium fuels–triggering Class A Special Warrant conversions and de-risking the path to commercialization.
  • Second Milestone Achieved: Landed institutional financing rounds and a preliminary licensing deal with a leading waste management firm, affirming market traction and activating Class B warrants to reward management and early investors.
  • Current Status (as of October 2, 2025): Aduro's disciplined execution has propelled it to NASDAQ listing under "ADUR," with shares trading at $13.80 USD and a market capitalization exceeding $450 million. This milestone reflects over 40x growth from early valuations.

ADUR Stock Performance (as of October 2, 2025)

Aduro Clean Technologies (ADUR) Stock Chart

The Results

Aduro transformed from a Canadian cleantech startup with a sub $10M valuation to a Nasdaq-listed company (Nasdaq: ADUR) with a greater than USD $450M market capitalization as of October 2, 2025; positioning it to lead in the $14 billion chemical recycling market. Its technology, born out of a lab in Sarnia Ontario, now has the potential to divert millions of tons of plastic waste from landfills and oceans annually, while producing sustainable fuels that reduce reliance on fossil-based alternatives. Early investors were able to achieve staggering ROI of anywhere between 10x and 40x, and management preserved equity ownership while raising capital at progressively higher valuations. The milestone structure and transaction with our public company Dimension Five Technologies Inc. built credibility, accelerated fundraising, made it easier to hire top-tier talent and opened access to global capital markets.

Why It Matters

This case demonstrates how Cyan Capital’s future investment vehicles will empower cleantech innovators and early-stage technology companies to navigate the complex path from early-stage R&D to global public markets. By structuring investor-friendly deals that align with the long development cycles and high capital needs of sustainable and breakthrough technologies. The success of Aduro’s journey highlights Cyan Capital’s ability to:

  • Identify high potential breakthrough technologies
  • Negotiate fair investment terms for all parties
  • Navigate the path from early-stage private financing → public listing → and continued board of director, audit committee support

Takeaway for Investors and Companies

Aduro's success anchors our SPV investment strategy: targeting under-recognized breakthrough companies poised at critical inflection points. These ventures are inherently transformative and capital-intensive, yet they often feature well-defined short- and long-term milestones that unlock substantial shareholder value and set them apart in competitive landscapes. Drawing from the 40x returns realized by Aduro stakeholders, we plan to commit to just 1-2 such opportunities annually, exercising patience to secure only the most promising opportunities.

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Broader Portfolio

Building on Aduro, we're pursuing additional high-conviction cleantech plays. Stay tuned for updates.

Disclaimer

This case study contains forward-looking statements within the meaning of applicable Canadian securities laws, including National Instrument 51-102 – Continuous Disclosure Obligations. These statements are based on certain assumptions and reflect our current expectations regarding future events, such as potential investment opportunities, returns, and market growth. However, forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, and other factors—many of which are beyond our control—that may cause actual results to differ materially from those expressed or implied. Investors should not place undue reliance on these statements, which speak only as of the date hereof. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. These investment opportunities are available only to accredited investors as defined in National Instrument 45-106 – Prospectus Exemptions. This material is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. Prospective investors should consult with their own legal, financial, and tax advisors before making any investment decisions.