MDJM LTD Announces Receipt of Nasdaq Delisting Determination and Plan to Request a Hearing before the Nasdaq Hearings Panel

Rhea-AI Summary

MDJM (UOKA) has received a delisting determination from Nasdaq due to failing to maintain the minimum bid price requirement of $1.00 per share. The company initially received a non-compliance notice on October 23, 2024, giving them 180 days until April 21, 2025, to regain compliance.

The company is not eligible for a second 180-day compliance period as it doesn't meet the $5,000,000 minimum stockholders' equity requirement. Unless MDJM appeals by April 30, 2025, its securities will be suspended on May 2, 2025, and delisted from Nasdaq.

MDJM plans to appeal the determination to the Nasdaq Hearings Panel, which will temporarily stay the suspension. The company is exploring various options, including a potential reverse stock split, to address the situation.

Positive

• Company's appeal to Nasdaq Hearings Panel will temporarily stay the delisting process

Negative

• Failed to maintain Nasdaq minimum bid price requirement of $1.00
• Does not meet $5,000,000 minimum stockholders' equity requirement
• Facing potential delisting from Nasdaq
• Failed to regain compliance within initial 180-day period

Insights

Capital Markets Expert

MDJM faces Nasdaq delisting for failing to maintain $1 minimum bid price, threatening liquidity and institutional support while appealing decision.

MDJM's receipt of a Nasdaq delisting determination represents a significant negative development for the company and its shareholders. After failing to maintain the minimum bid price requirement of $1.00 during its 180-day compliance period that began October 2024, MDJM now faces removal from the exchange. Particularly concerning is the company's ineligibility for a second remediation period due to insufficient stockholders' equity, falling below Nasdaq's $5,000,000 threshold.

The company's current share price of $0.1515 sits approximately 85% below the required minimum threshold. While MDJM plans to appeal to the Nasdaq Hearings Panel, which will temporarily stay any suspension, the fundamental compliance issues remain unresolved. The company has explicitly stated it's considering a reverse stock split as a potential remedy.

Exchange delistings typically trigger several cascading effects in capital markets:

• Reduced trading liquidity and wider bid-ask spreads
• Diminished access to capital markets for future financing needs
• Potential forced selling by institutional investors with mandate restrictions against holding OTC securities
• Reduced visibility in the investment community

With a market capitalization of just $3.88 million, MDJM already faces significant visibility challenges. The delisting determination compounds these issues and creates additional market structure obstacles for existing shareholders. While the appeal provides temporary relief, the company must address its fundamental compliance challenges to maintain its exchange listing status.

LETHAM, Scotland, April 25, 2025 /PRNewswire/ -- MDJM LTD (Nasdaq: UOKA) (the "Company" or "MDJM"), an integrated global culture-driven asset management company, today announced that the Company received a staff determination letter (the "Letter"), on April 23, 2025, from the Listing Qualifications Department of The Nasdaq Stock Market LLC ("Nasdaq") notifying the Company that, due to the Company's failure to regain compliance with a minimum bid price of $1.00 per share requirement for continued listing on The Nasdaq Capital Market, as set forth in Nasdaq Listing Rule 5550(a)(2) (the "Minimum Bid Requirement"), Nasdaq has determined (the "Determination") that Company's securities will be scheduled for delisting from Nasdaq unless the Company requests an appeal of the Determination to a Hearings Panel (the "Panel").

On October 23, 2024, the Company received a letter from Nasdaq (the "Notice"), notifying the Company that based upon the closing bid price of its securities for the last 30 consecutive business days preceding the Notice, the Company was not in compliance with the Minimum Bid Requirement.

In accordance with Listing Rule 5810(c)(3)(A), the Notice provided the Company a period of 180 calendar days from the date of the Notice, or until April 21, 2025, to regain compliance with the Minimum Bid Requirement. According to the Letter, the Company had not regained compliance with the Minimum Bid Requirement as of April 21, 2025, and is not eligible for a second 180-day period. Specifically, the Company does not comply with the initial listing requirement of $5,000,000 minimum stockholders' equity for The Nasdaq Capital Market, as contemplated for a second 180-day period.

Unless the Company requests an appeal of the Determination by April 30, 2025, the Company's securities will be suspended at the opening of business on May 2, 2025, and a Form 25-NSE will be filed with the U.S. Securities and Exchange Commission, which will remove the Company's securities from listing and registration on Nasdaq.

The Company plans to appeal the Determination to the Panel in due course. A hearing request will stay the suspension of the Company's securities and the filing of Form 25-NSE pending the Panel's decision. The Company is considering all options available to it, including a reverse stock split, and will provide its shareholders with material updates when they are available.

About MDJM LTD

MDJM LTD is a global culture-driven asset management company focused on transforming historical properties into cultural hubs that integrate modern digital technology with rich historical value. The Company has been expanding its operations in the UK, where it is developing projects such as Fernie Castle in Scotland and the Robin Hill Property in England. These properties are being remodeled into multi-functional cultural venues that will feature fine dining, hospitality services, art exhibitions, and cultural exchange events. As part of its broader strategy, MDJM seeks to position itself as a hub for artisan exchanges, art shows, and sales, leveraging its historical properties as platforms for promoting Eastern and Western cultural exchanges. This initiative reflects the Company's commitment to furthering its global market expansion and enhancing its cultural business footprint. For more information regarding the Company, please visit https://www.ir-uoka.com/.

Forward-Looking Statements

This announcement contains forward-looking statements. Please refer to the explanations of the usage of such forward-looking statements at https://www.ir-uoka.com/forward-looking-statements.  

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SOURCE MDJM LTD

FAQ

Why is UOKA stock facing delisting from Nasdaq?

UOKA is facing delisting because it failed to maintain Nasdaq's minimum bid price requirement of $1.00 per share and doesn't meet the $5,000,000 minimum stockholders' equity requirement for a second compliance period.

What happens to UOKA stock if the company doesn't appeal by April 30, 2025?

If UOKA doesn't appeal by April 30, 2025, its securities will be suspended from trading on May 2, 2025, and will be delisted from Nasdaq.

What options is UOKA considering to prevent delisting?

UOKA is considering various options, including a reverse stock split, and plans to appeal the delisting determination to the Nasdaq Hearings Panel.

When did UOKA first receive the Nasdaq non-compliance notice?

UOKA received the initial non-compliance notice from Nasdaq on October 23, 2024, giving them 180 days until April 21, 2025, to regain compliance.