Benefits of Making Business in Greenland | Buy & Sell Business

1. BENEFITS OF MAKING BUSINESS IN GREENLAND WWW.MERGERSCORP.COM

2. At MergersCorp M&A International we help our clients confidentially buy and sell privately held businesses, aligning the interests of all parties for mutual success and satisfaction. It is our goal to make the process of either buying a new business or selling your current business as smooth and efficient as possible. We know how important confidentiality is to our sellers and we treat it with the utmost importance. WWW.MERGERSCORP.COM

3. BENEFITS OF MAKING BUSINESS IN GREENLAND WWW.MERGERSCORP.COM

4. Country Overview Greenland is the world's largest island and an autonomous Danish dependent territory with limited self-government and its own parliament. Denmark contributes two thirds of Greenland's budget revenue, the rest coming mainly from fishing. Potential oil, gas and rare earth mineral reserves have attracted prospecting firms. Greenland enjoys perpetual daylight for two months each year but over 80% of the island is covered by an ice cap 4km thick in places. Global warming is feared to be causing the ice cover to melt increasingly fast but has also increased access to Greenland's mineral resources.

5. Executive Summary Greenland is located east of the Canadian arctic between the Atlantic and the Arctic Ocean, and, although Greenland physically is a part of the North American continent, Greenland has had strong cultural connections with Europe (first Norway and later Denmark) for more than a millennium. Greenland is the largest island in the world, but, with a population of only about 55,860 (2017), Greenland is the least densely populated territory in the world. More than three times the size of the U.S. state of Texas, Greenland extends about 1,660 miles (2,670 km) from north to south and more than 650 miles (1,050 km) from east to west at its widest point.

6. Introduction – Doing business in Greenland Denmark is ranked 4 among 190 economies in the ease of doing business, according to the latest World Bank annual ratings. The rank of Denmark deteriorated to 4 in 2019 from 3 in 2018. Greenland is rich in precious resources such as minerals, water, fish and last but not least, a vast amount of ice. Most of the Greenlandic terrain is made up of a vastness of flat, thick ice cap with tall mountains rising from the ground. On a global comparison, Greenland presents a stable political and legislative system with a general low risk business environment on par with other developed Western and Nordic countries.

7. Conducting business in Greenland There are several ways of doing business in Greenland •Limited Liability Company : •Public Liability Company •Branch •Representative Office In order to conduct business in Greenland local establishment and registration in the Greenlandic Business Register is required. Sole proprietorships can obtain such registration if the owner holds a Danish citizenship or a Greenlandic residency- /work permit, and resides in Greenland.

8. Taxation in Greenland All citizens of Greenland are subject to personal taxation on the basis of full or limited tax liability. The government tax rate is up to 44%, depending on the municipality of taxation. Persons with full tax liability to Greenland are further entitled to an extra allowance of DKK 10,000 a year (2016 amount). The corporate tax rate is 25% for both Greenlandic and foreign companies from 1 January 2020. On top of the corporate tax, there is a ‘surcharge’ of 6% of the corporate tax payable; consequently, the effective corporate tax rate is 26,5%. Oil and mineral licence holders are exempt from the 6% surcharge according to current practice.

9. Trade Greenland is the 149th largest export economy in the world. In 2017, Greenland exported $911M and imported $683M, resulting in a positive trade balance of $228M. The top exports of Greenland are Non-fillet Frozen Fish ($346M), Crustaceans ($342M), Processed Crustaceans ($127M), Fish Fillets ($60.7M) and Processed Fish ($9.1M), using the 1992 revision of the HS (Harmonized System) classification. Its top imports are Refined Petroleum ($113M), Passenger and Cargo Ships ($34.3M), Fishing Ships ($26.7M), Processed Crustaceans ($13.1M) and Cement Articles ($11.6M)..

10. Banking in Greenland Greenland is world’s largest island. However, in terms of the banking system, Greenland isn’t the one that stands in the crowd. It is considered as the autonomous constituent country within the Kingdom of Denmark. Since Greenland is within Denmark, Denmark controls the financial and monetary regulations in Greenland. There are two prominent banks in Greenland – • Bank of Greenland • Bank Nordik Bank of Greenland is the only local commercial bank of Greenland.

11. Our M&A Process NEGOTIATION & CLOSE POST MERGER INTEGRATION (PMI) INTEGRATION (PMI) POST MERGER TARGET APPRAISAL APPROACH DUE DILIGENCE Key Areas  Target & market analysis;  Initial assessment of synergies & value drivers;  Indicative valuation;  Go or No-Go decision;  Preparation of transaction documents (NDA – Non- disclosure Agreement/LOI- Letter of Intent);  Select Transaction team;  Appoint advisors;  Consider funding ability.  Initial approach letter;  Signing of NDA;  Prepare & share initial information requests;  Formulation of LOI (Letter of Intent) & possible negotiations;  Initial meeting and Q&A;  Circulate information on the Target to the Transaction team.  Set scope of due diligence;  Set up VDR (virtual data room);  Coordinating of due diligence, further meetings and Q&A sessions;  Consider points relevant to the Post-Merger (PMI) phase;  Revisit indicative valuation & prepare detailed valuation based on due diligence findings;  SPA negotiations with the seller;  Development of final structure (share/asset deal) and final valuation;  Approvals;  Signing of SPA & Close.  Consider the extent of integration;  Development of 100 Day PMI Plan;  Consider short & long term objectives;  Estimate requirements to capture synergies;  Determine resource needs & optimal allocation. Parties Involved  CFO;  Head of M&A;  Accountants;  Corporate finance advisors;  Consultants.  Senior management;  CEO, CFO, CTO;  Strategy director;  Head of M&A;  Head of Business Development;  Consultants.  Company general counsel;  Lawyers;  Senior management.  Company general counsel;  Lawyers;  Senior management/HR. 11 © Midaxo 2018 www.midaxo.com

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13. MergersCorp.com The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. Member firms of the MergersCorp network of independent firms are affiliated with MergersCorp International. MergersCorp International provides no client services. No member firm has any authority to obligate or bind MergersCorp International or any other member firm vis-à-vis third parties, nor does MergersCorp International have any such authority to obligate or bind any member firm. Copyright © 2020 MergersCorp International. All rights reserved. 13 © Midaxo 2018 www.midaxo.com