MDJM LTD Closes $6 Million Public Offering
MDJM LTD (NASDAQ: UOKA), a leading global cultural innovation company, has successfully completed an upsized public offering, raising approximately $6 million. This strategic move involves the issuance of 4,280,000 units, each unit comprising one Class A ordinary share and one Series A warrant to purchase another Class A ordinary share at a public offering price of $1.40 per unit.
Details of the Offering
The Series A warrants are set to expire one year from the issuance, and they provide immediate exercisability upon issuance. The initial exercise price is set at the public offering price but includes adjustment provisions on the fourth and eighth trading days following the offering's closing. These adjustments will modify the exercise price to 70% and 50% of the initial price, respectively, while adjusting the number of underlying shares proportionately. Additionally, the warrants come with an option that allows holders to exchange each warrant for 1.5 Class A ordinary shares when exercising.
Moreover, MDJM has provided the underwriter with a 45-day option to purchase additional Class A ordinary shares and Series A warrants, allowing for coverage of any over-allotment. Notably, on February 10, 2026, the underwriter exercised part of this option, acquiring 642,000 Series A warrants.
Financial Gains from the Offering
The company is anticipated to receive total gross proceeds of about US$6 million, before accounting for underwriting discounts and other related expenses. This funding will significantly bolster MDJM's financial foundation as it continues to expand its innovative cultural initiatives.
Management and Regulatory Information
Maxim Group LLC took on the role of sole book-running manager for this offering, ensuring a smooth execution of this financial milestone. The company has adhered to regulatory requirements by filing a registration statement with the U.S. Securities and Exchange Commission (SEC), which became effective prior to the offering.
Company Overview
MDJM LTD specializes in the integration of cultural IP development, animation production, international licensing, and managing cultural venues. With an ongoing commitment to enhancing its operations, the company is currently developing properties in the UK designed to serve as multi-functional cultural venues. These include the Fernie Castle in Scotland and the Robin Hill Property in England, both of which are set to feature dining, hospitality, and cultural events.
Fernie Castle, in particular, is undergoing extensive architectural and landscape renovation, partnering with the renowned Kengo Kuma & Associates to ensure a seamless blend of tradition and innovation. As part of MDJM's mission, the company also collaborates with selected European animation studios to create animated shorts that effectively combine Eastern narratives with Western artistic elements.
Commitment to Growth
MDJM's initiatives reflect its dedication to creating a global cultural ecosystem that thrives on storytelling and unique experiences. By expanding its reach and enhancing its cultural footprint, the company is positioning itself as a leader in the cultural sector.
Frequently Asked Questions
What is the total amount raised by MDJM LTD from the offering?
MDJM LTD raised approximately $6 million from the upsized public offering.
What does each unit consist of in the offering?
Each unit consists of one Class A ordinary share and one Series A warrant to purchase one Class A ordinary share.
Who acted as the book-running manager for the offering?
Maxim Group LLC acted as the sole book-running manager for the public offering.
How long will the Series A warrants be exercisable?
The Series A warrants will expire one year from their issuance date.
What is the focus of MDJM LTD as a company?
MDJM LTD focuses on cultural IP development, animation production, international licensing, and cultural venue operations.
