Company: SISI
Filing Date: 2025-07-03
Form Type: PRE 14C
Source: 0001641172-25-017715
Chunk: 4

Company: SHINECO, INC.
Filing Date: 2025-07-03
Form: PRE 14C
Chunk 4
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 one-year period. Pursuant to the procedures set forth in the Nasdaq Listing Rule 5800 Series, the Company submitted a request for hearing before the Nasdaq’s Hearings Panel (the “Panel”) to appeal Nasdaq’s determination. The hearing request automatically stayed the suspension of trading of the Company’s Common Stock until such time that the hearing is held and Nasdaq has made its determination. Nasdaq has set July 24, 2025 to be the hearing date. Nasdaq’s determination is expected to depend, in part, on the Company’s ability to regain compliance with the Bid Price Requirement. Accordingly, the Board and the Consenting Shareholders found it in the best interest of the Company and its shareholders to effectuate a reverse stock split. A decrease in the number of outstanding shares of our Common Stock resulting from the Reverse Stock Split should, absent other factors, increase the per share market price of the Company’s Common Stock, although there is no assurance that the trading price for the Common Stock would remain over the continued listing requirements of Nasdaq in order to regain compliance with the Bid Price Requirement or sustain a continued listing of our Common Stock on the Nasdaq.

The Board cannot predict with certainty what effect the Reverse Stock Split will have on the market price of the Common Stock, particularly over the longer term. Some investors may view a reverse stock split negatively, which could result in a decrease in our market capitalization. Additionally, any improvement in liquidity due to increased institutional or brokerage interest or lower trading commissions may be offset by the lower number of outstanding shares.

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 to 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