Company: SISI
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006895
Chunk: 89

Company: SHINECO, INC.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 89
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in Pharmaceutical Co., Ltd. (“Biowin”), a company established under the laws of China, pursuant to the previously announced
stock purchase agreement, dated as of October 21, 2022, among Beijing Kanghuayuan Medicine Information Consulting Co., Ltd., a company
established under the laws of China (“Seller”), Biowin, the Company and Shineco Life. As the consideration for the acquisition,
the Company paid to Seller US$9,000,000 in cash and the Company issued 13,583 shares of the Company’s common stock, par value US$0.001
per share, to the equity holders of Biowin or any persons designated by Biowin. According to a supplementary agreement, dated as of December
30, 2022, by and among Shineco Life, the Seller and Biowin, the Seller owned 51% of the issued equity interests of Biowin before January
1, 2023, and transferred the 51% of the issued equity interests of Biowin together with its controlling rights of production and operation
of Biowin to Shineco Life on January 1, 2023.

On
May 29, 2023, Shineco Life entered into a stock purchase agreement with Dream Partner Limited, a BVI corporation (“Dream Partner”),
Chongqing Wintus Group, a corporation incorporated under the laws of mainland China (“Wintus”), and certain shareholders
of Dream Partner (the “Sellers”), pursuant to which Shineco Life shall acquire 71.42% equity interest in Wintus (the “Acquisition”).
On September 19, 2023, the Company closed the Acquisition. As the consideration for the Acquisition, the Company (a) paid the Sellers
an aggregate cash consideration of US$2,000,000; (b) issued certain shareholders, as listed in the agreement, an aggregate of 41,667
shares of the Company’s restricted Common Stock; and (c) transferred and sold to the Sellers 100% of the Company’s equity
interest in Beijing Tenet-Jove Technological Development Co., Ltd. (“Tenet-Jove Shares”). Following the closing of the Acquisition
and the sale of the Tenet-Jove Shares, the Company divested its equity interest in its operating subsidiary Tenet-Jove (“Tenet-Jove
Disposal Group”) and thereby terminated its VIE Structure.

We
used our subsidiaries’ vertically and horizontally integrated production, distribution