Company: SISI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010889
Chunk: 184

Company: SHINECO, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 184
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SPA”) with 22 purchasers, each an unrelated third party to the Company (collectively, the “August
2024 Purchasers”). Pursuant to the SPA, the August 2024 Purchasers agree to purchase, 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 March 31, 2025, 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 “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 “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 were not
subject to the registration requirements of the Securities Act, pursuant to Regulation S promulgated thereunder. The Shares were
issued to the Purchasers on January 10, 2025, and the proceeds of approximately US$27.6 million received in April 2025. The
remaining proceeds are expected to be fully received by June 30, 2025.

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