Greenland Energy Company: FY2025 Financial Statements & Business Combination Update

Key Highlights for Investors

• Business Combination Progress: Greenland Energy Company (formerly March GL, Greenland Exploration Limited, and Pelican Holdco) is in the final stages of a three-way merger, expected to result in a Nasdaq-listed entity named Greenland Energy Company. The business combination involves Pelican Acquisition Corporation (a SPAC), Greenland Exploration Limited, and March GL Company. Shareholders of March GL will receive 20,000,000 shares, and Greenland shareholders will receive 1,500,000 shares of the new Holdco, with an aggregate value of US\$215 million at \$10/share.
• Development-Stage Operations: As of December 31, 2025, the company is a pure development-stage entity. No revenues have been generated; all activities are related to formation, exploration planning, and business combination transactions. The primary asset is a right to explore over 2 million acres in the Jameson Land Basin, Eastern Greenland—a highly prospective but historically undrilled oil and gas basin.
• Exploration Commitments: The company has entered into an Exploration and Participation Agreement with 80 Mile PLC, aiming to fund two exploration wells in Greenland. Successful drilling could earn the company up to a 70% working interest in the basin. Failure to meet drilling milestones could result in forfeiture of rights.
• Financial Position:
  • March GL: Total assets of \$1.67 million, primarily cash and prepaid expenses; total liabilities of \$398,795; net loss of \$4.28 million for the period; stockholders’ equity of \$1.27 million. All expenses are related to exploration, engineering, logistics, and management fees.
  • Greenland Exploration Limited: Assets of \$378,760 (mostly cash, prepaid expense, and loan receivable); liabilities of \$535,335 (accounts payable and loans); net loss of \$176,575; negative equity of \$156,575. All costs are general and administrative, related to business combination and formation.
  • Pelican Holdco, Inc.: Assets of \$59,740 (due from Pelican Acquisition); liabilities of \$148,585 (accounts payable, promissory note to Greenland); net loss of \$88,845; no common shares issued yet.
• Going Concern Doubts: All entities’ auditors have raised substantial doubt about their ability to continue as a going concern. None have revenue; all rely on external financing or completion of the business combination. There is no assurance that the merger or capital raising will be successful or timely.
• Shareholder Dilution & Exchange: Upon closing the merger, all existing shares and warrants will be exchanged for Holdco common stock and warrants. Greenland and March GL shareholders will receive aggregate shares as outlined above. Pelican shareholders will receive one Holdco share for each Pelican share held.
• Related Party Transactions: Multiple promissory notes have been issued between entities and their affiliates, totaling several hundred thousand dollars. These are non-interest bearing and due at the business combination closing.
• Advisory & Contingency Fees: ThinkEquity LLC is entitled to up to \$2 million in cash fees if the business combination closes. Additional placement fees and warrants may be issued upon successful financing or redemption events.
• Recent Capital Raising: Subsequent to year end, March GL raised an additional \$291,323 through private placement. Greenland has continued to issue promissory notes and pay transaction costs for Pelican and Holdco.
• Environmental & Regulatory Risks: All operations are subject to Greenlandic regulatory approval, environmental reviews, and permitting. Asset retirement obligations and environmental liabilities will be recognized once drilling commences.
• Segment Reporting: All companies operate as a single reportable segment—exploration and development of oil and gas assets. No revenues, no geographical diversification yet.

Details Shareholders Should Know

• Business Combination is Not Yet Complete: As of the date of the financial statements, the business combination had not closed. All share exchanges, new capital structure, and future operational milestones depend on successful completion. If the merger fails, shareholders could lose value, and the companies may face liquidation or restructuring.
• Significant Cash Burn & No Revenue: All entities have incurred substantial losses and negative cash flows. March GL lost \$4.28 million, Greenland lost \$176,575, and Pelican lost \$88,845—all in less than a year. Future capital needs are urgent; failure to raise funds or close the merger could result in insolvency.
• Exploration Risk: The value of the company is tied to its ability to drill and prove hydrocarbons in Greenland. If exploration milestones are not met or wells are unsuccessful, the company may lose its rights and investors may see share values decline.
• Dilution & Structure: Shareholders will be significantly diluted as shares are issued to March GL and Greenland holders, Pelican shareholders, and warrant holders. The post-merger entity will have at least 21.5 million shares outstanding, not counting warrants.
• Advisory Fees & Potential Overhang: Up to \$2 million in cash fees and additional warrants may be payable to ThinkEquity if the business combination and financing transactions close, potentially impacting future cash reserves or share values.
• Post-Balance Sheet Events: More capital raising and promissory notes have occurred since year end. The company is actively seeking funds to keep operations afloat and pay transaction costs.
• No Internal Controls Audit: Auditors did not review internal controls over financial reporting, citing early-stage status. Investors should be aware of potential risks related to accounting and controls.
• Regulatory and Environmental Uncertainties: Operations in Greenland are subject to extensive regulatory, environmental, and permitting requirements. Asset retirement obligations will be recognized only once drilling begins.
• Price Sensitivity: The completion (or failure) of the business combination, success in raising capital, achievement of exploration milestones, and regulatory approvals are all potentially price-sensitive events. Investors should monitor news closely for updates on the merger, financing, and drilling activities.

Potential Share Price Movers

• Business Combination Closing: The most significant event is the closing of the merger and subsequent Nasdaq listing. If successful, this could unlock substantial value, liquidity, and market visibility. Failure to close could cause share values to plummet.
• Capital Raising & Dilution: Ongoing capital raising, issuance of new shares and warrants, and payment of transaction fees may dilute existing shareholders and impact share price.
• Exploration Progress & Milestones: Announcement of successful drilling or earning of working interest in Greenland could materially increase share value. Conversely, failure or delay may cause declines.
• Regulatory Approvals & Environmental Claims: Any news—positive or negative—regarding Greenlandic regulatory approvals or environmental liabilities could move the share price.
• Going Concern & Solvency: Auditors’ repeated warnings about going concern status underline the financial fragility of the entity. Any news of new financing or insolvency would be highly price sensitive.

Conclusion

Greenland Energy Company and its predecessor entities are at a critical juncture. The outcome of their business combination, capital raising efforts, and exploration milestones in Greenland are all highly price-sensitive events. Investors should be aware of the substantial risks—financial, operational, regulatory, and environmental—facing the company. The current financial statements indicate no revenue, significant cash burn, and ongoing dependence on external financing. Completion of the merger and successful drilling in Greenland are the key potential value drivers for the future.

Disclaimer

This article is based on audited financial statements and public disclosures as of December 31, 2025. It is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult professional advisors before making investment decisions. The company’s future is subject to substantial uncertainty, and past performance is not indicative of future results.

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