MDJM stock price plummeted after the expanded public offering pricing

Investing.com – MDJM Ltd (NASDAQ:UOKA) stock plummeted 66.5% on Tuesday after the company announced the pricing of its expanded-scale unit public offering.

This comprehensive global cultural innovation company issued 4.28 million units at a price of $1.40 per unit. Each unit includes one Class A common share and one Series A warrant to purchase one Class A common share. The offering is expected to raise approximately $6 million in gross proceeds, before deducting underwriting discounts and other expenses.

The Series A warrants will expire one year after issuance and will be exercisable immediately at an initial exercise price equal to the public offering price. However, the exercise price will be adjusted to 70% of the initial price after the fourth trading day following the closing, and further reduced to 50% after the eighth trading day. Additionally, warrant holders can convert each warrant into 1.5 Class A common shares through a zero-cash exercise option.

Maxim Group LLC served as the exclusive lead underwriter for the offering, with settlement expected around February 11, 2026. MDJM has granted the underwriters a 45-day option to purchase up to an additional 642,000 Class A common shares and/or Series A warrants to purchase up to 642,000 Class A common shares.

The sharp decline in stock price reflects investor concerns over potential dilution from the offering and the warrant structure, which allows significant price adjustments within weeks after issuance.

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