Company: SISI
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006895
Chunk: 67

Company: SHINECO, INC.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 67
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 million,
reflecting original issue discount of US$200,000. Interest accrues on the outstanding balance of the Notes at 6% per annum. The Company
has received the principal in full from the Investor and used the proceeds for general working capital purposes. As of June 30, 2024,
the Notes were fully converted, and shares of the Company’s common stock totaling 1,946,766 were issued by the Company to the Investor,
equaling principal and interests amounted to US$7,472,638.

On
August 19, 2021, the Company entered into a Securities Purchase Agreement (the “Agreement”) pursuant to which the Company
issued an unsecured convertible promissory note with a maturity date of August 23, 2022 (the “Note”) to the same Investor.
The Note has an original principal amount of US$10,520,000 and Investor gave consideration of US$10.0 million, reflecting original issue
discount of US$500,000 and Investor’s legal fee of US$20,000. On September 7, 2022, the Company signed an extension amendment with
the Investor to extend the maturity date to August 23, 2023, thereby increasing the principal amount to US$11,053,443.50. On October
21, 2022, the Company signed a standstill agreement with the Investor, pursuant to which the Investor will not seek repayment of any
portion of the Note during the period from October 21, 2022 to January 20, 2023. Thereafter, the Company signed a second extension amendment
dated as June 15, 2023, with the Investor to extend the maturity date to August 23, 2024, thereby increasing the principal amount to
US$11,878,241. On December 21, 2023, the Company entered into a preliminary agreement with the Investor, pursuant to which the Investor
would not seek repayment of any portion of the Note during the period from December 22, 2023 to April 16, 2024. The Company signed a
third extension amendment dated June 11, 2024, with the Investor to extend the maturity date to August 23, 2025, thereby increasing the
principal amount to US$10,698,374.

For
the above-mentioned convertible promissory notes issued, interest accrues on the outstanding balance of these notes at 6% per annum.