Company: SISI
Filing Date: 2025-01-14
Form Type: S-3
Source: 0001493152-25-002134
Chunk: 14

Company: SHINECO, INC.
Filing Date: 2025-01-14
Form: S-3
Chunk 14
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 or part of your investment.

This prospectus also contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors, including the risks faced by us described below and elsewhere in this prospectus. See “Special Note Regarding Forward-Looking Statements” for information relating to these forward-looking statements.

Risks Related to Our Common Stock

Sales of substantial amounts of our common stock by the Selling Stockholders, or the perception that these sales could occur, could adversely affect the price of our common stock.

We are registering the offer and sale of the shares of common stock covered by this prospectus, so that such shares of common stock may be offered for sale into the public market by the Selling Stockholders. The number of shares of common stock covered by this prospectus is significant in relation to our currently outstanding common stock and the historical trading volume of our common stock. The sale by the Selling Stockholders of all or a significant portion of the shares of common stock covered by this prospectus could have a material adverse effect on the market price of our common stock. In addition, the perception in the public markets that the Selling Stockholders might sell all or a portion of the shares of common stock covered by this prospectus could also, in and of itself, have a material adverse effect on the market price of our common stock.

Our corporate structure may subject us to risks due to the uncertainty in the interpretation and application of PRC laws and regulations.

The securities offered by this prospectus involve a high degree of risks. Shineco is a holding company incorporated in Delaware. As a holding company with no material operations of its own, Shineco conducts a substantial amount of its operations through its operating subsidiaries in China. Prior to the Wintus Acquisition and the termination of the VIE structure, Shineco conducted its business through a combination of contractual arrangements with the VIEs and equity ownership of its PRC subsidiaries. Shineco did not directly hold any equity ownership of the VIEs. Instead, Shineco controlled and received the economic benefits of the VIEs’ business operations through certain contractual arrangements. The contractual arrangements with respect to the VIEs were not equivalent to an equity ownership in the business of the VIEs but were used to replicate foreign investments in China-based companies where Chinese law prohibit or limit direct foreign investment in Chinese companies belonging to certain categories. Prior to the Wintus Acquisition and the termination of the VIE structure , any references to control or benefits