Company: SISI
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006895
Chunk: 74

Company: SHINECO, INC.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 74
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 2023, the Company entered
into a securities purchase agreement (the “Purchase Agreement”) with certain non-US investors (the “Investors”).
Under the Purchase Agreement, the Company agreed to sell to the Investors up to 50,000 shares (the “Shares”) of its common
stock at a per share purchase price of US$28.80 for gross proceeds of up to US$1,440,000. The Company has received gross proceeds in
full from the Investors, and all of the Shares were issued on December 28, 2023.

On February 1, 2024, the Company’s
stockholders approved a 1-for-10 reverse stock split of the shares of the Company’s common stock, with a par value of US$0.001
per share, which became effective on February 16, 2024 (the “First 2024 Reverse Stock Split”). As a result of the First 2024
Reverse Stock Split, each of the ten pre-split shares of common stock outstanding automatically combined and converted to one issued
and outstanding share of common stock without any action on the part of the stockholders. No fractional shares of common stock were issued
to any shareholders in connection with the First 2024 Reverse Stock Split. Each shareholder received one share of common stock in lieu
of the fractional share that would have resulted from the First 2024 Reverse Stock Split. The number of the Company’s authorized
common stock also increased to 150,000,000 shares, and the par value of the common stock following the First 2024 Reverse Stock Split
remained at US$0.001 per share. As a result of the First 2024 Reverse Stock Split, the Company’s shares and per share data as reflected
in the unaudited condensed consolidated financial statements have been retroactively restated as if the transaction occurred at the beginning
of the periods presented.

    37

On June 18, 2024, the Board of Directors
of the Company approved the issuance of shares of common stock pursuant to the Company’s 2024 Equity Incentive Plan (the “2024
Plan”) in the aggregate amount of 30,650 shares (the “Shares”) to its non-officer employees. The fair value of the
Shares was US$2,331,852 based on the fair value of the share price of US$76.08 on June 18, 2024. The Shares were issued on June 18