MDJM Ltd (NASDAQ:UOKA) shares are tumbling on Tuesday following the company’s announcement of a public offering priced at $1.40 per unit, which includes one Class A ordinary share and one Series A warrant.
The Catalyst
MDJM Ltd has priced its upsized public offering of 4,280,000 units at $1.40 per unit, targeting gross proceeds of approximately $6.0 million before expenses.
Each unit consists of one Class A ordinary share and one Series A warrant. The offering is set to close on Feb. 11, 2026, subject to customary conditions.
The company has granted underwriters a 45-day option to purchase additional shares and warrants, which may dilute existing shareholders. The Series A warrants are immediately exercisable, with price adjustments scheduled for the fourth and eighth trading days after the offering. MDJM is expanding in the UK, focusing on cultural venues and animation projects.
The broader market is mixed, with the Dow Jones up 0.51% and the Nasdaq up 0.17%. However, MDJM’s decline suggests company-specific concerns, especially amid a generally stable market environment and a significant drop in its share price.
Technical Analysis
Currently, the stock is trading 55.5% below its 20-day simple moving average (SMA) and 70.1% below its 100-day SMA, indicating a bearish trend. Over the past 12 months, shares have decreased by 81.90%, and they are currently positioned closer to their 52-week lows than highs.
The RSI is at 59.76, which is considered neutral territory, while the MACD is above the signal line, suggesting some bullish momentum. The combination of neutral RSI and bullish MACD indicates mixed momentum for the stock.
- Key Resistance: $1.50
- Key Support: 70 cents
Company Context
MDJM Ltd provides real estate agency services to its real estate developer clients and offers real estate consulting and independent training services on an as-needed basis. The company generates all of its revenue from hotel income, with the majority coming from the United Kingdom.
The recent public offering is part of MDJM’s strategy to expand its cultural venue operations and animation projects in Europe, highlighting its commitment to growth in the cultural innovation sector.
UOKA Price Action: Mdjm shares were down 65.92% at $0.78 at the time of publication on Tuesday, according to Benzinga Pro data.
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