Company: SISI
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010889
Chunk: 83

Company: SHINECO, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 83
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9 million, punitive damages of US$10 million, plus interest,
costs, and fees. In April 2022, the Court granted the Company’s motion for a preliminary injunction to restrain the Company’s
transfer agent from removing the restrictive legends on the shares, provided that the Company posts a bond, which the Company declined
to do. On June 13, 2022, the restriction imposed on the shares were lifted.

Nominal defendant Transhare Corporation moved to dismiss
the defendants’ counterclaim against it for wrongful refusal to remove restrictions pursuant to 6 Del. C. § 8-401, and its
motion was fully submitted in April 2022. On September 9, 2022, the Court granted Transhare Corporation’s motion to dismiss defendants’
counterclaim for wrongful refusal to remove restrictions. Defendants have appealed the Court’s September 9, 2022 order dismissing
defendants’ counterclaim for wrongful refusal to remove restrictions. On October 3, 2022, the parties submitted a stipulation dismissing
defendants’ outstanding counterclaim against Transhare Corporation seeking declaratory judgment.

The Company participated in a formal mediation with
the defendants Lei Zhang and Yan Li on September 18, 2023. As a result of the mediation, the parties were able to reach a settlement agreement
in December 2023. The parties executed a Settlement Agreement on December 21, 2023, and the claims by each side were formally dismissed
by the court on December 22, 2023. The subscription receivable amounted to US$3,024,000 was waived by the Company during the fiscal year
ended June 30, 2024, and the Company will not retrieve the shares that were issued to the defendants.

    44

Introduced
by a business partner (the “Party A”) of Life Science, Life Science entered into a loan agreement with an individual
(the “the Plaintiff”) on April 15, 2024 (the Party A, Life Science and the Plaintiff are collectively called the
“Three Parties”). Pursuant to the loan agreement, Life Science would obtain a loan in the amount of RMB 25.0 million
(approximately US$ 3.4 million) with a term of 90 days, at the interest rate of 30.0%, and the loan was to be used exclusively as
working capital for Life Science’s future merger and acquisition projects. To prevent the misuse of the loan, the Three
Part