Company: SISI
Filing Date: 2025-07-03
Form Type: PRE 14C
Source: 0001641172-25-017715
Chunk: 6

Company: SHINECO, INC.
Filing Date: 2025-07-03
Form: PRE 14C
Chunk 6
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 more difficult to sell, or require greater transaction costs per share to sell, than shares in “round lots” of even multiples of 100 shares.

● While the Board believes that a higher stock price may help generate investor interest, there can be no assurance that the Reverse Stock Split will result in a per share price that will attract institutional investors or investment funds or that such share price will satisfy the investing guidelines of institutional investors or investment funds. As a result, the trading liquidity of the Common Stock may not necessarily improve.

● Although the Board believes that the decrease in the number of shares of Common Stock outstanding as a consequence of the Reverse Stock Split and the anticipated increase in the market price of Common Stock could encourage interest in our Common Stock and possibly promote greater liquidity for the Company’s stockholders, such liquidity could also be adversely affected by the reduced number of shares outstanding after the Reverse Stock Split.

● If the Reverse Stock
Split is implemented prior to Nasdaq’s determination, there can be no assurance that Nasdaq will make a positive determination
to continue our listing following our appeal hearing, which may contribute to negative publicity and adverse effect on the price of our
Common Stock.

Principal Effects of the Reverse Stock Split

If our Board effects the Reverse Stock Split, we will amend our Certificate of Incorporation by filing a Certificate of Amendment to Certificate of Incorporation in substantially the form of Annex A (the “Certificate of Amendment”) with the Delaware Secretary of State, which will result in the number of shares of the Common Stock held by each stockholder being reduced to a number of shares determined by dividing the number of shares held immediately before the Reverse Stock Split by the split denominator, and then rounding up to the nearest whole share. The Reverse Stock Split would not affect any stockholder’s percentage ownership interests in the Company or proportionate voting power, except to the extent that interests in fractional shares would be rounded up to the nearest whole share. The Reverse Stock Split only impacts outstanding shares and not authorized shares unless the Certificate of Amendment by its terms also increases the authorized shares.

Corporate Matters. The Reverse Stock Split would have the following effects on the number of shares of Common Stock outstanding as of the Record Date:

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 a 1-for-25 reverse stock split, every 25 shares owned by a stockholder would be exchanged for one share; and the number           
 of shares of our Common Stock issued and outstanding will be reduced from 45,030,730 shares to 1,801,229 shares;                  |
| ● | in