Company: SISI
Filing Date: 2025-07-15
Form Type: DEF 14C
Source: 0001641172-25-019641
Chunk: 5

Company: SHINECO, INC.
Filing Date: 2025-07-15
Form: DEF 14C
Chunk 5
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 listing rules require that the closing bid price of the Company remain at $1.00 per share or greater for 10 consecutive business days before declaring that the Company has regained compliance with the Bid Price Requirement, unless the staff exercises its discretion to extend this 10 day period.

Board Discretion to Implement the Reverse Stock Split

The Consenting Shareholders’ approval of a range of Reverse Stock Split ratios (rather than a single exchange ratio) is in the best interests of the Company’s stockholders because it provides the Board with the flexibility to achieve the desired results of the Reverse Stock Split and because it is not possible to predict market conditions at the time the Reverse Stock Split would be implemented. The Board would carry out the Reverse Stock Split only upon the Board’s determination that a reverse stock split would be in the best interests of the Company’s stockholders at that time, and only (without further stockholder approval) on or before July 2, 2026. The Board would then set the ratio for the Reverse Stock Split within the range approved by the Company’s stockholders and in an amount it determines is advisable and in the best interests of the stockholders considering relevant market conditions at the time the Reverse Stock Split is to be implemented. In determining the Reverse Stock Split ratio, the Board may consider numerous factors including:

● the general feedback
of the Nasdaq panel, although not definitive, coming out of the Nasdaq Hearing;

● the projected impact of the Reverse Stock Split ratio on trading liquidity in the Common Stock and the Company’s ability to continue the listing of the Common Stock on the Nasdaq;

● the historical and projected performance of the Common Stock;

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● general economic and other related conditions prevailing in the Company’s industry and in the marketplace;

● the Company’s capitalization (including the number of shares of Common Stock issued and outstanding);

● the then-prevailing trading price for the Common Stock and the volume level thereof; and

● potential devaluation of our market capitalization as a result of a Reverse Stock Split.

The Board intends to select a reverse stock split ratio that it believes would be most likely to achieve the anticipated benefits of the reverse stock split described above. As indicated above, the Board may elect not to implement the Reverse Stock Split if it does not believe that the Company will be permitted to maintain its listing on Nasdaq or for any other reason deemed in the best interest of the Company’s stockholders.

Certain Risks Associated with the Reverse Stock Split

The Company faces the following risks associated with effecting