This is a routine equity plan adoption and insider grant with no immediate trading catalyst. Monitor for any shareholder vote on the previously flagged share consolidation and capital increase, which would be a more material dilutive event.
Price Chart
Executive Summary
MDJM LTD adopted a new 2026 Second Equity Incentive Plan and immediately granted 400,000 restricted ordinary shares (200,000 Class A and 200,000 Class B) to employees. CEO Siping Xu received 200,000 Class B shares, increasing his voting control to approximately 89.71%. This is a routine equity incentive plan adoption and insider grant that further entrenches the CEO's supermajority control, with no new cash raised or operational changes disclosed. The filing is neutral as it represents standard compensation and retention mechanics for a distressed OTC-traded company.
Key Facts
- Board adopted the 2026 Second Equity Incentive Plan on July 15, 2026, reserving 200,000 Class A and 200,000 Class B ordinary shares for issuance.
- Immediately granted 400,000 restricted shares to employees, including 200,000 Class B shares to CEO Siping Xu.
- CEO Siping Xu now controls approximately 89.71% of the aggregate voting power of the company.
- The company was suspended from Nasdaq in March 2026 and trades on the OTC market, per the cross-filing 20-F context.
Financial Impact
No cash consideration; 400,000 restricted shares issued as compensation. CEO's voting control increased to ~89.71%.
Risk Factors
- CEO's supermajority voting control (~89.71%) eliminates any meaningful minority shareholder influence.
- The company remains in distress (OTC-traded, previously Nasdaq-suspended), and the equity plan could facilitate further dilutive grants without shareholder recourse.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001104659-26-086323 |
| Document: tm2620688d1_ex10-2.htm | 0001104659-26-086323 |
| Document: tm2620688d1_6k.htm | 0001104659-26-086323 |
| Document: 0001104659-26-086323-index-headers.html | 0001104659-26-086323 |
| Document: 0001104659-26-086323-index.html | 0001104659-26-086323 |
| Document: 0001104659-26-086323.txt | 0001104659-26-086323 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 2, 2026 7w ago | 6-K | $0.2500 $0.2000 | ▼ −20.00% | ▼ −18.88% | $0.1351 (−45.96%) |
Aug 17, 2026 10w ago | 6-K | $0.3000 $0.2500 | ▲ +16.67% | ▲ +15.68% | $0.1351 (+54.97%) |
Jul 23, 2026 13w ago | 6-K | $0.1400 $0.3180 | ▲ +127.14% | ▲ +123.52% | $0.1351 (−3.50%) |
Jun 29, 2026 17w ago | 6-K | $0.3590 $0.1250 | ▼ −65.18% | ▼ −64.92% | $0.1351 (−62.37%) |
Jun 11, 2026 19w ago | 6-K | $0.3160 $0.1502 | ▼ −52.47% | ▼ −53.73% | $0.1351 (−57.25%) |
May 27, 2026 21w ago | 6-K | $0.3500 $0.3588 | ▼ −2.51% | ▼ −5.66% | $0.1351 (+61.40%) |
May 20, 2026 22w ago | 6-K | $0.3310 $0.4300 | ▲ +29.91% | ▲ +29.58% | $0.1351 (−59.18%) |
May 6, 2026 24w ago | 6-K | $0.0550 $0.4230 | ▲ +669.09% | ▲ +665.92% | $0.1351 (+145.64%) |
May 4, 2026 25w ago | 6-K | $0.0550 $0.3940 | ▲ +616.36% | ▲ +612.15% | $0.1351 (+145.64%) |
Apr 22, 2026 26w ago | 6-K | $0.0560 $0.3310 | ▼ −491.07% | ▼ −486.23% | $0.1351 (−141.25%) |
US Market Status
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