Company: SISI
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006895
Chunk: 95

Company: SHINECO, INC.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 95
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 and the Company agreed to issue and sell to the August 2024 Purchasers, an aggregate of 624,375 shares
of the Company’s common stock, par value US$0.001 per share (the “August 2024 Shares”), at a purchase price of
US$13.20 per share, and for an aggregate purchase price of US$8,241,750. The SPA, the transaction contemplated thereby, and the
issuance of the August 2024 Shares have been approved by the Company’s board of directors. The closing of the transaction
contemplated by the SPA took place on September 10, 2024. As of December 31, 2024, proceeds of approximately US$4.7 million were
received, and the remaining proceeds are expected to be fully received by June 30, 2025.

On December 24, 2024, the Company entered into a securities
purchase agreement with nine non-U.S. investors (the “December 2024 Purchasers”), pursuant to which the Company agreed to
sell, and the December 2024 Purchasers agreed to purchase, severally and not jointly, an aggregate of 15,000,000 shares of common stock
of the Company (the “December 2024 Shares”) at a purchase price of US$2.18 per share for gross proceeds of US$32.7 million.
In reliance on the Purchasers’ representations to the Company, the Shares issued in this offering were not subject to the registration
requirements of the Securities Act, pursuant to Regulation S promulgated thereunder. The December 2024 Shares were issued to the December
2024 Purchasers on January 10, 2025.

48

Factors
Affecting Financial Performance

We
believe that the following factors will affect our financial performance:

Increasing
demand for our products – We believe that the increasing demand for our products will have a positive impact on our financial
position. We plan to develop new products and expand our distribution network as well as to grow our business through possible mergers
and acquisitions of similar or synergetic businesses, all aimed at increasing awareness of our brand, developing customer loyalty, meeting
customer demands in various markets and providing solid foundations for our growth. As of the date of this Quarterly Report, however,
we do not have any agreements, undertakings or understandings to acquire any such entities and there can be no guarantee that we ever
will.

Maintaining
effective