Company: SISI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010889
Chunk: 70

Company: SHINECO, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 70
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 Investor gave consideration of US$3.0 million, reflecting original issue discount
of US$150,000 and Investor’s legal fee of US$20,000. The second convertible promissory note (“Note #2”) has an original
principal amount of US$4,200,000 and Investor gave consideration of US$4.0 million, reflecting original issue discount of US$200,000.
Interest accrues on the outstanding balance of the Notes at 6% per annum. The Company has received the principal in full from the Investor
and used the proceeds for general working capital purposes. As of June 30, 2024, the Notes were fully converted, and shares of the Company’s
common stock totaling 1,946,766 were issued by the Company to the Investor, equaling principal and interests amounted to US$7,472,638.

    37

On August 19, 2021, the Company entered into a Securities
Purchase Agreement (the “Agreement”) pursuant to which the Company issued an unsecured convertible promissory note with a
maturity date of August 23, 2022 (the “Note”) to the same Investor. The Note has an original principal amount of US$10,520,000
and Investor gave consideration of US$10.0 million, reflecting original issue discount of US$500,000 and Investor’s legal fee of
US$20,000. On September 7, 2022, the Company signed an extension amendment with the Investor to extend the maturity date to August 23,
2023, thereby increasing the principal amount to US$11,053,443.50. On October 21, 2022, the Company signed a standstill agreement with
the Investor, pursuant to which the Investor will not seek repayment of any portion of the Note during the period from October 21, 2022
to January 20, 2023. Thereafter, the Company signed a second extension amendment dated as June 15, 2023, with the Investor to extend the
maturity date to August 23, 2024, thereby increasing the principal amount to US$11,878,241. On December 21, 2023, the Company entered
into a preliminary agreement with the Investor, pursuant to which the Investor would not seek repayment of any portion of the Note during
the period from December 22, 2023 to April 16, 2024. The Company signed