MDJM Ltd. (Nasdaq: MDJH) has received a warning from Nasdaq for not being compliant with its minimum public holder's requirement.
The Tianjin-based real estate firm said in a statement Wednesday after the markets closed that the company has failed to maintain at least 300 public holders. While it does not face an immediate delisting or suspension, MDJM has until Sept. 17 to submit a plan to regain compliance with the capital market. If approved by Nasdaq, it can grant an extension of up to 180 days from when the company received the warning letter (Aug. 3)” to evidence compliance."
“The Company's management is looking into various options available to regain compliance and maintain its continued listing on Nasdaq Market,” MDJM said in a statement today.
Operating since 2002, MDJM provides real estate agency services to real estate developer clients. It also provides real estate marketing and planning services, real estate agency services, and advertisement planning services. The company has branch offices in Tianjin, Chengdu, Suzhou, and Yangzhou. MDJM made its trading in January 2019, raising $6.30 million in its IPO.
In its latest financial report, MDJM said revenue in the full year 2019 reached $5.68 million, up 136% year-over-year. The company also turned profitable on a net income of $299,364, in contrast to a net loss of $537,814 in 2018.
However, MDJM has warned that it could take a hit in the first quarter due to the Chinese governmemt's suspending many of its real estate projects due to the coronavirus outbreak.
By midday, the stock was trading 4% higher from Wednesday’s close at $3.25 per American depositary share.
Shares of MDJM are up 10% year-to-date.