The stock in MDJM Ltd. (Nasdaq: MDJH) surged Wednesday after the company announced the launch of its new asset management business in the United Kingdom under the name Mansions Estate Agent Ltd.
According to the announcement, Mansions Estate is a joint venture between MDJM, Ocean Tide Wealth – a specialist mortgage broker in London targeting Chinese communities, and Mingzhe Zhang. The JV will provide comprehensive real estate services, including property leasing, property sales, furnishings, and routine property maintenance, to global investors.
MDJM noted that the deal is a major milestone in its global expansion plans. The company said it will provide bilingual services to customers from different time zones and offer "affordable and transparent pricing."
"Our new asset management business in the United Kingdom could greatly assist global investors in compliance with the local regulations on property rentals, especially when violations of these regulations could damage the investors' rental profits," MDJM's chairman and CEO, Siping Xu, said in the statement today.
Xu also highlighted MDJM's "rich experiences in promoting our clients' property on the online rental market" and expressed optimism that the JV will quickly become profitable.
The news sent MDJH stock as high as 52% early Wednesday; by noon, shares were up 8%, at $5.28 apiece. Year-to-date, MDJM has shows a strong recovery of 39% in trading – in June, shares in the company at some point soared above $8 per share despite the lack of major developments.
MDJM had established a presence in the U.K. earlier, with its subsidiary MD Local Global Ltd. scoring a contract in March 2021 with the Singapore subsidiary of Berkeley Group Holdings plc. to introduce prospective buyers to Berkeley and associated companies for introductory fees.
In April, MDJM reported 3% revenue growth for the full year 2020, at $5.9 million; net income narrowed by 43% to $258,000.