Company: SISI
Filing Date: 2025-07-03
Form Type: PRE 14C
Source: 0001641172-25-017715
Chunk: 5

Company: SHINECO, INC.
Filing Date: 2025-07-03
Form: PRE 14C
Chunk 5
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 determining the Reverse Stock Split ratio, the Board may consider numerous factors including:

● 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;

● 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.

Certain Risks Associated with the Reverse Stock Split

The Company faces the following risks associated with effecting the Reverse Stock Split:

● Although the Company expects that the Reverse Stock Split will result in an increase in the market price of our Common Stock, the Company cannot assure you that the Reverse Stock Split, if effected, will increase the market price of the Common Stock in proportion to the reduction in the number of shares of the Common Stock outstanding or result in a permanent increase in the market price. The effect the Reverse Stock Split may have upon the market price of the Common Stock cannot be predicted with any certainty, and the history of similar reverse stock splits for companies in similar circumstances to the Company’s is varied. The market price of the Common Stock is dependent on many factors, including the Company’s business and financial performance, general market conditions, prospects for future success and other factors detailed from time to time in the reports the Company files with the Securities and Exchange Commission. Accordingly, the total market capitalization of the Common Stock after the proposed Reverse Stock Split may be lower than the total market capitalization before the proposed Reverse Stock Split and, in the future, the market price of the Common Stock following the Reverse Stock Split may not exceed or remain higher than the market price prior to the proposed Reverse Stock Split.

● Even if the Reverse Stock Split is approved, the Reverse Stock Split is effected and the Common Stock continues to be listed on the Nasdaq, there can be no assurance that the Company will maintain the ongoing continued listing requirements for an extended period of time.

● The Reverse Stock Split may result in some stockholders owning “odd lots” of less than 100 shares of Common Stock on a post-split basis. These odd lots may be