MDJM LTD Highlights Strong Policy Support for Animation and Creative Industries Across the UK and Europe

Rhea-AI Summary

MDJM (Nasdaq: UOKA) highlighted expanding policy support for animation and creative industries across the UK and Europe on March 9, 2026. Key points: the UK creative industries delivered £124 billion GVA in 2023 and supported ~2.4 million jobs, while UK tax credits now offer 39% AVEC/VFX credits.

MDJM said these incentives, plus Scotland initiatives and EU Creative Europe funding, strengthen cross-border production, digital production capacity, and long-term sector prospects for animation and audiovisual projects.

Positive

• UK creative industries contributed £124 billion GVA in 2023
• UK AVEC and VFX incentives provide up to a 39% production credit
• EU Creative Europe program supports cross-border audiovisual collaboration

Negative

• None.

News Market Reaction – UOKA

+1.25%

18 alerts

+1.25% News Effect

+30.3% Peak in 1 hr 50 min

+$39K Valuation Impact

$3M Market Cap

0.0x Rel. Volume

On the day this news was published, UOKA gained 1.25%, reflecting a mild positive market reaction. Argus tracked a peak move of +30.3% during that session. Our momentum scanner triggered 18 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $39K to the company's valuation, bringing the market cap to $3M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

UK creative GVA: £124 billion Share of UK output: over 5% Jobs supported: approximately 2.4 million +4 more

7 metrics

UK creative GVA £124 billion Gross value added to UK economy in 2023

Share of UK output over 5% Portion of total UK economic output from creative industries in 2023

Jobs supported approximately 2.4 million UK creative industries employment nationwide

AVEC credit rate 39% Expenditure credit on qualifying animated film and TV production costs

UK VFX credit rate 39% Credit on qualifying UK visual-effects expenditure from 2025

Reference year 2023 Year of UK creative industries GVA data cited

Policy year 2025 Start of enhanced UK VFX incentives

Market Reality Check

Price: $0.0709 Vol: Volume 25,578,705 is belo...

low vol

$0.0709 Last Close

Volume Volume 25,578,705 is below 20-day average 41,654,778 (relative volume 0.61x). low

Technical Price $0.0718 is trading below the $2.39 200-day moving average and near the 52-week low of $0.0607.

Peers on Argus

Lodging peers show mixed moves: SOND -23.96%, CVEO +0.45%, GHG -0.04%, SHCO -0.1...

1 Up 1 Down

Lodging peers show mixed moves: SOND -23.96%, CVEO +0.45%, GHG -0.04%, SHCO -0.11%, MCG 0%. This pattern points to stock-specific dynamics rather than a coordinated sector reaction to the creative-industry policy news.

Historical Context

5 past events · Latest: Mar 05 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Mar 05	Strategic initiative	Positive	+9.9%	Company highlighted digital animation museum as growth and cultural initiative.
Mar 03	Capital raising	Positive	+15.4%	Secured $8.5M in public offerings to fund animation and cultural projects.
Mar 02	Production update	Positive	-16.4%	Announced ‘Journey to the West’ animated short entering full production.
Feb 27	Dilutive offering	Negative	-61.9%	Priced $2.5M registered direct equity offering at $0.1015 per share.
Feb 20	Strategic partnership	Positive	-14.9%	Announced cultural partnership with H5 for Fernie Castle Animation Art Gallery.

Pattern Detected

Recent news often centers on animation and financing; positive strategic updates have sometimes sold off, while dilutive offerings have generally aligned with negative price reactions.

Recent Company History

Over the past weeks, MDJM has reported multiple financing and strategic updates. On Feb 27, a registered direct offering at $0.1015 per share coincided with a -61.9% move. Subsequent announcements on production of “Journey to the West”, public offerings totaling $8.5M, and a digital animation museum showed mixed reactions, with both double-digit gains and declines. The current policy-focused announcement fits this shift toward animation and cultural IP but comes as the share price trades near its 52-week low after significant dilution.

Regulatory & Risk Context

Active S-3 Shelf · $70,000,000

Shelf Active

Active S-3 Shelf Registration 2026-03-04

$70,000,000 registered capacity

An effective F-3 shelf filed on 2026-03-04 allows MDJM LTD to offer up to $70,000,000 of securities via future prospectus supplements, following recent financings disclosed in the base prospectus. This provides flexibility for additional capital raises that could affect existing shareholders.

Market Pulse Summary

This announcement emphasizes that MDJM operates within a policy landscape that strongly supports ani...

Analysis

This announcement emphasizes that MDJM operates within a policy landscape that strongly supports animation and broader creative industries, with UK and European programs offering credits of up to 39% on qualifying production costs. Combined with cross-border initiatives such as Creative Europe, these frameworks create a supportive context for MDJM’s recent animation and cultural projects. Investors may monitor how the company converts this favorable environment into concrete revenues, while also tracking capital-raising activity under the existing F-3 shelf.

Key Terms

audio-visual expenditure credit (avec), gross value added (gva), creative europe program, co-production treaties

4 terms

audio-visual expenditure credit (avec) financial

"Under the Audio-Visual Expenditure Credit (AVEC) system, animated films..."

An audio-visual expenditure credit (AVEC) is a government tax credit or rebate that reduces the net cost of producing film, TV, or other audio-visual content by returning a portion of qualified production spending. Think of it as a large, official discount or cash rebate that improves a project's cash flow and profitability. For investors, AVECs can meaningfully lower production risk, speed break-even, and increase the value of companies or projects that rely on content creation.

gross value added (gva) financial

"the UK creative industries contributed more than £124 billion in gross value added (GVA)..."

Gross value added (GVA) measures the extra value created by a business, industry, or region after subtracting the cost of the goods and services used to produce output. Think of it like a baker turning flour and yeast (inputs) into a loaf (output): GVA is the value the baker adds that can pay wages, cover profits and taxes. Investors use GVA to gauge real economic contribution, productivity and growth potential beyond raw sales numbers, helping to compare sectors or regions on how efficiently they turn inputs into value.

creative europe program regulatory

"the Creative Europe program serves as the European Union's flagship initiative..."

A European Union funding program that supports cultural and creative industries—like film, music, games, publishing and performing arts—by providing grants, loans and networks to help projects reach wider audiences and cross borders. For investors, it matters because program-backed projects can reduce development risk, unlock co‑funding, create new revenue streams, and signal policy support for a sector, much like a government-backed accelerator makes startups more bankable and easier to partner with.

co-production treaties regulatory

"expanded national incentive programs, co-production treaties, and cultural-sector funding..."

Agreements between two or more countries that let film, television or other content produced jointly be treated as a domestic production in each signatory nation, unlocking local tax credits, grants, distribution rights and regulatory approvals. For investors, these treaties can lower production costs, broaden market access and share financial risk—think of them as a passport that gives a project preferential treatment and funding options in multiple markets, which can improve a production’s revenue and margin prospects.

AI-generated analysis. Not financial advice.

LONDON, March 9, 2026 /PRNewswire/ -- MDJM LTD (Nasdaq: UOKA) ("MDJM" or the "Company") today highlighted the growing policy support and economic significance of the animation and creative industries across the UK and Europe, noting that the sector has become an increasingly strategic component of national and regional economic development.

The UK's creative industries are widely recognized as one of the country's most dynamic economic sectors. According to official statistics cited in the House of Lords Library article "Creative industries: Growth, jobs and productivity," published by the UK Parliament on January 30, 2025, the UK creative industries contributed more than £124 billion in gross value added (GVA) to the UK economy in 2023. This represented over 5% of total UK economic output and supported approximately 2.4 million jobs nationwide.

This sustained economic contribution has led successive governments to position the creative industries, including film, television, animation, design, and digital media, as a key growth sector within the UK's long-term economic strategy.

UK Incentives Strengthening the Screen and Animation Sector

Within this broader framework, the UK maintains one of the world's most structured policy environments supporting screen production and animation development.

Under the Audio-Visual Expenditure Credit (AVEC) system, animated films and animated television productions may qualify for a 39% expenditure credit on qualifying production cost, subject to certification and eligibility requirements. The policy forms part of a broader reform of the UK's creative-industry tax relief system designed to attract global production and strengthen the domestic creative ecosystem.

In parallel, the UK Government has introduced enhanced incentives for visual-effects production. Beginning in 2025, qualifying UK VFX expenditure for film and high-end television productions may receive a 39% credit, while previous limits on eligible VFX spending have been removed. These measures are intended to reinforce the UK's role as a global hub for digital production, animation, and visual-effects technologies.

Together, these policies place the UK among the most competitive international locations for animation production and audiovisual development.

Scotland's Expanding Creative Economy

Within the UK, Scotland has increasingly positioned the creative industries as a central pillar of its cultural and economic development strategy.

Scotland's creative economy includes sectors such as film, television, animation, design, games, and digital media. Collectively, these industries contribute billions of pounds annually to the national economy while supporting tens of thousands of creative jobs. Public agencies such as Screen Scotland and Creative Scotland have expanded their focus on building production capacity, supporting creative talent, and strengthening the country's screen-sector infrastructure.

Regional cultural infrastructure has also become an important component of Scotland's creative-economy strategy. Cultural institutions and creative production facilities are increasingly recognized for their role in attracting international projects and supporting long-term industry growth.

European Policy Environment Supporting Animation

Beyond the UK, the animation and audiovisual industries across Europe operate within a robust policy framework designed to support cultural production and international collaboration.

At the continental level, the Creative Europe program serves as the European Union's flagship initiative for supporting audiovisual and cultural production. The program facilitates cross-border collaboration among European studios, producers, and cultural institutions while promoting the international circulation of European creative works.

European governments have also expanded national incentive programs, co-production treaties, and cultural-sector funding mechanisms to support animation and audiovisual production. These policies have contributed to the emergence of a highly interconnected European animation ecosystem in which studios, artists, and production partners frequently collaborate across national borders.

Animation as a Strategic Creative Industry

The growing recognition of animation within policy frameworks across the UK and Europe reflects a broader transformation within the global creative economy.

Animated storytelling now occupies an increasingly central role within the international media landscape, spanning cinema, streaming platforms, digital media, and cultural institutions. As demand for high-quality narrative content continues to expand worldwide, governments and industry bodies have increasingly emphasized the importance of supporting animation as both a cultural medium and a high-value creative industry.

MDJM noted that the strengthening policy environment across the UK and Europe provides a supportive backdrop for the continued development of animation projects and cross-border creative collaboration.

The Company believes that the combination of structured policy incentives, growing public investment in cultural infrastructure, and an increasingly interconnected European animation ecosystem will continue to reinforce the long-term prospects of the sector.

Against this backdrop, the Company remains confident that its strategic direction and distinctive model, integrating cultural infrastructure, creative production, and digital platforms, will generate meaningful cultural impact while delivering sustainable economic value over time.

About MDJM LTD

MDJM LTD is a global cultural innovation company focused on cultural IP development, animation production, international licensing, and cultural venue operations. 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 is collaborating with select European animation studios to develop animated short films that blend Eastern themes with Western artistry. The Company aims to integrate Eastern philosophy with international artistic practices, creating a global cultural ecosystem built on storytelling and immersive experience. 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 within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's annual report on Form 20-F and its other filings with the U.S. Securities and Exchange Commission.

Investor Contact
Sherry Zheng
WAVECREST GROUP INC.
Phone: +1 718-213-7386
Email: sherry@wavecrestipo.com 

View original content:https://www.prnewswire.com/news-releases/mdjm-ltd-highlights-strong-policy-support-for-animation-and-creative-industries-across-the-uk-and-europe-302708137.html

SOURCE MDJM LTD

FAQ

What did MDJM (UOKA) say about UK tax credits for animation on March 9, 2026?

The company noted the UK offers up to 39% expenditure credits for qualifying animated production costs. According to the company, AVEC and enhanced VFX credits are intended to attract global production and strengthen domestic animation and digital production capacity.

How large is the UK creative industries contribution cited by MDJM (UOKA)?

MDJM cited that the UK creative industries delivered £124 billion GVA in 2023, about 5% of UK output. According to the company, this activity supported roughly 2.4 million jobs, underscoring the sector's economic scale and policy attention.

What role did MDJM (UOKA) describe for Scotland in animation growth?

MDJM said Scotland positions the creative sector as a strategic growth pillar, expanding production capacity and talent support. According to the company, agencies like Screen Scotland and Creative Scotland focus on infrastructure and attracting international screen projects to the region.

How does MDJM (UOKA) describe European support for animation and audiovisual production?

The company described a robust European policy environment, including the Creative Europe program and national incentives that enable co-productions. According to the company, these mechanisms foster cross-border collaboration and a more interconnected European animation ecosystem.