Measure taken to Comply with Nasdaq Rule 5550(a)(2) Regarding Minimum Bid Price
BEIJING, Aug. 07, 2025 (GLOBE NEWSWIRE) — Shineco, Inc. (Nasdaq:SISI) (“Shineco” or the “Company”), a provider of innovative diagnostic medical products and related medical devices, today announced that the Company’s Board of Directors has approved a 50:1 reverse stock split of the Company’s issued and outstanding common stock, par value $0.001 per share (the “Common Stock”) to be effective 12:01 a.m., Eastern Time, on August 11, 2025. The Company’s Common Stock will continue to trade on the Nasdaq Capital Market LLC under the symbol “SISI” following the reverse stock split, with a new CUSIP number of 824567606. The Company expects its Common Stock to open for trading on a post-split basis on Nasdaq as of the commencement of trading on August 11, 2025.
On July 3, 2025, the Company’s stockholders approved a reverse stock split of the Company’s Common Stock at a ratio of not less than 25:1 and note more than 60:1, with such ratio to be determined at the discretion of the Company’s Board of Directors. The reverse stock split is intended to bring the Company into compliance with the minimum bid price requirement for continued listing on Nasdaq, 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. Further, despite the implementation of the reverse stock split and the achievement of technical compliance with the minimum bid price requirement, there is no assurance that Nasdaq will make a positive determination to continue our listing following the review of our compliance plan by Nasdaq Listing and Hearing Review Council.
The 50:1 reverse stock split will automatically result in the conversion of fifty (50) current shares of the Company’s Common Stock into one (1) new share of Common Stock. Any fraction of a share of Common Stock outstanding that would be created as a result of the reverse stock split will be rounded up to the next whole share. Holders of the Company’s Common Stock held in book-entry form or through a bank, broker or other nominee do not need to take any action in connection with the reverse stock split. Stockholders of record will be receiving information from the Company’s transfer agent regarding their common stock ownership post-reverse stock split.
The reverse stock split is expected to reduce the number of shares of the Company’s Common Stock outstanding on or about August 11, 2025, from approximately 45,722,728 shares to approximately 914,455 shares subject to some variability as a result of the fractional upward adjustments. Proportionate adjustments will be made to the exercise prices and the number of shares underlying the Company’s outstanding equity awards, as applicable, as well as to the number of shares issuable under the Company’s equity incentive plans and certain existing agreements. The Common Stock issued pursuant to the reverse stock split will remain fully paid and non-assessable. The reverse stock split will not affect the number of authorized shares of Common Stock.
Stockholders who hold shares electronically in book-entry form with Transhare Corporation (“Transhare”), the Company’s transfer agent, will not need to take action to receive evidence of their shares of post-reverse stock split Common Stock.
Stockholders of record holding certificates holding pre-split shares of the Company’s Common Stock will receive a letter of transmittal from Transhare with instructions on how to surrender certificates representing pre-split shares. Stockholders should not send in their pre-split certificates until they receive a letter of transmittal from Transhare. Unless a stockholder specifically requests a new paper certificate or holds restricted shares, stockholders of record who held pre-split certificates will receive their post-split shares electronically in book-entry form and will be receiving a statement from Transhare regarding their Common Stock ownership post-reverse stock split.
Additional information about the reverse stock split can be found in the Company’s definitive information statement filed with the Securities and Exchange Commission (the “SEC”) on July 15, 2025 which is available free of charge at the SEC’s website, www.sec.gov.
About Shineco, Inc.:
Shineco, Inc. (“Shineco” or the “Company”) aims to “focus on healthy living and improve the quality of life” by providing safe, efficient and high-quality health and medical products and services to society. Shineco, operating through subsidiaries, has researched and developed 33 kinds of in vitro diagnostic reagents and related medical devices to date, and the Company also produces and sells healthy and nutritious foods. For more information about Shineco, please visit www.biosisi.com/.
Forward-Looking Statements:
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by words such as “may,” “will,” “should,” “could,” “intend,” “expect,” “plan,” “budget,” “forecast,” “anticipate,” “believe,” “estimate,” “forecast,” “potential,” “continue,” “evaluate” or similar words. Forward-looking statements should not be relied upon as they are neither historical facts nor guarantees of future performance. Rather, they are based solely on our current beliefs, expectations and assumptions about future business, future plans and strategies, forecasts, expected events and trends, economics, and other future conditions. Examples of forward-looking statements include, among other things, our innovation and market position in our products and services, our competitive advantages, and our expectation that the 5-minute cardiac test will be one of the leading products in this field to meet the need for test results immediately upon intake. Please do not rely on any forward-looking statements. Actual results may differ materially from those indicated in historical results or forward-looking statements due to various factors, including, but not limited to, the Company’s ability to raise additional capital, its ability to maintain and grow its business, the variability of its results of operations, its ability to maintain and enhance its brand, its ability to develop and introduce new products and services, its ability to obtain all necessary regulatory approvals in the jurisdictions in which it intends to market and sell its products, Companies to be acquired, Successful integration of technology and assets into its portfolio of products and services Marketing and other business development initiatives Industry competition, general government regulations, economic conditions, health epidemics or pandemics, reliance on key personnel, attracting, hiring and retaining personnel with the technical skills and experience required to meet customer requirements and protect intellectual property. Shineco encourages you to review other factors that may affect its future performance in its filings with the Securities and Exchange Commission. The forward-looking statements in this press release are based only on information currently available to us and are made only as of the date of this press release, and Shineco undertakes no obligation to update any forward-looking statements, except as required by applicable rules and regulations. Additional information respecting factors that could materially affect the Company and its operations are contained in the Company’s filings with the SEC which can be found on the SEC’s website at www.sec.gov.
For more information, please contact:
Shineco, Inc.
[email protected]
Mobile: +86-010-68130220
Precept Investor Relations LLC
David J. Rudnick
[email protected]
Mobile: +1-646-694-8538
SOURCE: Shineco, Inc.
