LETHAM, Scotland - MDJM LTD (NASDAQ: MDJH), an international asset management company, has entered into an agreement with institutional investors for a private placement aimed at raising approximately $2.45 million, before fees and expenses. The transaction is scheduled to close on September 12, 2024, pending the fulfillment of standard closing conditions.
The company will issue 2,722,224 units at a purchase price of $0.90 per unit. Each unit comprises one ordinary share and two types of warrants: Series A and Series B. Series A warrants can be exercised at $1.35 per share, with adjustments for standard corporate actions, while Series B warrants have an exercise price of $0.001 per share, with the number of shares determined at a future Reset Date. Both warrants are immediately exercisable and will expire three and a half years post-issuance.
Maxim (NASDAQ:MXIM) Group LLC is serving as the exclusive placement agent for the offering. The securities in this private placement are exempt from registration under the Securities Act of 1933, as amended, and will not be registered under the Act or state securities laws. Consequently, they may not be offered or sold in the United States absent registration or an exemption from registration requirements.
MDJM LTD specializes in transforming historic properties into cultural venues that merge digital technology with historical significance. The company is expanding in the UK, with projects like Fernie Castle in Scotland and Robin Hill Property in England, which are being developed into cultural hubs with dining, hospitality, art exhibitions, and cultural events. The firm aims to use these properties to promote Eastern and Western cultural exchanges.
This press release also includes forward-looking statements regarding the company's future operations and financial performance. However, these are subject to known and unknown risks, and there is no assurance that the expectations will be accurate. Investors are advised to consider the potential for variance in actual results and to review the company's filings with the U.S. Securities and Exchange Commission for further information.
The information provided is based on a press release statement from MDJM LTD.
In other recent news, global asset management firm MDJM LTD has appointed William Bo Wang as a board member and Director of its UK subsidiary, Mansions Catering and Hotel Ltd. This development is part of MDJM's strategy to bolster its cultural business development in the UK. Mr. Wang's extensive experience in education and cultural exchange is expected to enhance MDJM's initiatives, especially in the UK market.
Mr. Wang's role at Mansions will involve overseeing the strategic development of MDJM's cultural initiatives, including integrating educational elements into the company's cultural projects. These projects include the transformation of historical properties such as Fernie Castle and Robin Hill Hotel into cultural venues for exhibitions, lectures, and exchange activities.
This is a recent development in MDJM LTD's ongoing efforts to expand its operations in the UK. The company is actively transforming historical properties into cultural hubs, blending digital technology with historical value. The firm's projects, such as Fernie Castle in Scotland and Robin Hill Property in England, are being developed into multi-functional venues to host a variety of cultural events.
InvestingPro Insights
As MDJM LTD (NASDAQ: MDJH) navigates through its expansion and fundraising efforts, the latest data from InvestingPro offers an in-depth look at the company's financial health and market performance. With the upcoming private placement, investors might be interested in several key metrics that could influence their decision-making process.
Firstly, MDJM LTD's market capitalization stands at a modest $11.97 million, reflecting the size of the company within the international asset management landscape. The company's recent revenue figures show a significant quarterly increase of 1097.51%, indicating a potential turnaround or a highly variable revenue stream. Despite this, the revenue over the last twelve months has declined by 67.85%, suggesting challenges in maintaining consistent growth.
From a valuation standpoint, MDJM LTD's price-to-book ratio is 3.28 as of the last twelve months, which may offer insights into how the market values the company's net assets. However, the InvestingPro Tips highlight that the stock trades with high volatility and has seen a notable price drop of 15.14% over the last three months. Additionally, the company's stock price often moves inversely to market trends, which could be of interest to investors looking for diversification benefits or countercyclical investment opportunities.
InvestingPro also notes that MDJM LTD holds more cash than debt on its balance sheet, which can be a positive sign of financial stability. Moreover, the company's liquid assets exceed its short-term obligations, providing a cushion for operational needs or unexpected expenses. Nevertheless, it's important to consider that the company has not been profitable over the last twelve months and does not pay a dividend to shareholders, which might be a concern for income-focused investors.
For those looking to delve deeper into the company's financials and potential, InvestingPro provides additional insights, including a total of 11 InvestingPro Tips for MDJM LTD. These tips, along with other detailed metrics, are available to subscribers and can be accessed through the InvestingPro platform at https://www.investing.com/pro/MDJH.
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