LETHAM, Scotland - MDJM LTD (NASDAQ:MDJH), a global asset management firm, received a notification from Nasdaq on October 23, 2024, indicating that the company does not comply with the minimum bid price requirement for continued listing on the Nasdaq Stock Market. The Nasdaq Listing Rule 5550(a)(2) mandates a minimum bid price of $1.00 per share, which MDJM has failed to meet for 30 consecutive business days from September 11, 2024, to October 22, 2024.
Despite this notification, MDJM's listing on the Nasdaq Capital Market remains unaffected at present. The company has been granted a 180-day period, ending on April 21, 2025, to rectify the bid price deficiency. Compliance can be achieved if the company's ordinary shares maintain a closing bid price of at least $1.00 for at least 10 consecutive business days within this timeframe.
Should MDJM fail to regain compliance within the allotted 180 days, it may be eligible for an additional 180-day period. This is contingent on the company meeting the continued listing requirement for the market value of publicly held shares and all other initial listing standards for Nasdaq, with the exception of the bid price rule. MDJM would also need to provide a written notice of its intention to cure the deficiency, potentially through a reverse stock split.
MDJM LTD specializes in transforming historical properties into cultural venues that integrate modern digital technology with historical value. The company is expanding in the UK, developing projects such as Fernie Castle in Scotland and the Robin Hill Property in England into multifunctional cultural hubs. These venues will offer dining, hospitality, art exhibitions, and cultural events, supporting MDJM's strategy to promote Eastern and Western cultural exchanges.
This press release statement also includes forward-looking statements regarding MDJM's expectations for future events and financial performance. These statements involve risks and uncertainties, and actual results may differ from those projected. The company does not undertake any obligation to update these statements in light of new information or future events.
Investors are advised to review MDJM's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F, for a more comprehensive understanding of the company's financial condition and the risks it faces.
In other recent news, MDJM LTD, an international asset management company, has secured approximately $2.45 million through a private placement with institutional investors. The company plans to issue 2,722,224 units, each comprising one ordinary share and two types of warrants. Maxim (NASDAQ:MXIM) Group LLC is serving as the exclusive placement agent for this offering.
In related developments, MDJM LTD has appointed William Bo Wang to its board and as Director of its UK subsidiary, Mansions Catering and Hotel Ltd. Mr. Wang's role will involve overseeing the strategic development of MDJM's cultural initiatives in the UK, leveraging his extensive experience in education and cultural exchange.
Simultaneously, the company is actively involved in transforming historic properties into cultural venues in the UK, with projects like Fernie Castle in Scotland and Robin Hill Property in England. These initiatives, aimed at promoting Eastern and Western cultural exchanges, are in line with the company's expansion strategy in the UK.
Investors are advised to review MDJM LTD's filings with the U.S. Securities and Exchange Commission for more information. All these developments reflect the company's ongoing efforts to enhance its operations and presence in the UK market.
InvestingPro Insights
MDJM LTD's recent Nasdaq notification comes amid a challenging financial landscape for the company. According to InvestingPro data, MDJM's market capitalization stands at a modest $9.65 million, reflecting its current struggles. The company's revenue for the last twelve months as of Q2 2024 was just $0.11 million, with a staggering operating income margin of -1529.38%, indicating significant operational challenges.
InvestingPro Tips highlight that MDJM's stock has "fared poorly over the last month" and has "fallen significantly over the last year." This aligns with the company's current Nasdaq listing predicament. The stock's price has declined by 19.84% in the past month and 64.11% over the last year, as per InvestingPro data.
Despite these challenges, an InvestingPro Tip notes that MDJM "holds more cash than debt on its balance sheet," which could provide some financial flexibility as the company works to address its listing compliance issues. Additionally, MDJM is characterized as a "niche player in the industry," which may offer unique opportunities for recovery if the company can leverage its specialized focus in asset management and cultural property transformation.
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for MDJH, providing a deeper understanding of the company's financial position and market performance.
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