Greenland Energy Company (GLND) issued a formal response on September 29, 2026, to a research report published by Fugazi Research that labeled the company's stock "uninvestable at any price above zero." In a letter to shareholders included as Exhibit 99.1 to its Form 8-K, the company’s board of directors and management refuted what they described as inaccurate and misleading claims regarding the company's financial health and operational status.
The company clarified that it is an exploration-stage entity with no current earnings, production, or proved reserves. It stated that its reported 13-billion-barrel figure represents the high-end of an independent resource estimate by Sproule ERCE, which also established a low-end estimate of approximately 1.1 billion barrels and a best estimate of about 4.2 billion barrels. The company emphasized that these figures are prospective resources and not reserves, and that the only way to determine the actual value is to drill.
Regarding the company's cash burn, Greenland Energy argued that Fugazi incorrectly added $28 million in investing cash to $4.6 million in operating cash. The company clarified that $17.5 million of the investing cash was capitalized into the asset, and $10.5 million was prepaid exploration costs and deposits, which are one-time acquisitions rather than recurring expenses. The company noted it spent $4.6 million on operating cash over six months.
The filing also addressed the dilution from share sales and warrants. Greenland Energy stated that it raised approximately $70 million in cash by selling shares and warrants, and that warrants carry strike prices of $5.00 and $15.00. The company argued that issuing shares for fair value is not destruction and that exercising these warrants could bring in roughly $110 million of new cash if the stock price rises above the strike price.
Finally, the company addressed the 2028 deadline mentioned in the report, stating that permitting in Greenland takes as long as it takes and that the company paid £500,000 to preserve the right to earn up to a 70% working interest for two more years. The company stated it paid $231,000 in the bank and reported internal controls as not yet effective, noting this is common for newly public companies building a formal control framework.
