Company: SISI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010889
Chunk: 80

Company: SHINECO, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 80
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 expected to be fully received by June 30, 2025.

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On October 21, 2024, the Company’s stockholders
approved a 1-for-24 reverse stock split of the shares of the Company’s common stock, with a par value of US$0.001 per share, which
became effective on November 12, 2024 (the “Second 2024 Reverse Stock Split”). As a result of the Second 2024 Reverse Stock
Split, each of the twenty-four pre-split shares of common stock outstanding automatically combined and converted to one issued and outstanding
share of common stock without any action on the part of the stockholders. No fractional shares of common stock were issued to any shareholders
in connection with the Second 2024 Reverse Stock Split. Each shareholder received one share of common stock in lieu of the fractional
share that would have resulted from the Second 2024 Reverse Stock Split. As a result of the Second 2024 Reverse Stock Split, the Company’s
shares and per share data as reflected in the unaudited condensed consolidated financial statements have been retroactively restated as
if the transaction occurred at the beginning of the periods presented.

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.

NOTE 17 - CONCENTRATIONS AND RISKS

The Company maintains principally all bank accounts
in the PRC. The cash balance held in the PRC bank accounts from the continuing operations was US$143,144 and US$100,948 as of
March 31, 2025