Shineco Announces Acquisition of Singapore Evolutionary Stem Cell Company

Rhea-AI Summary

Shineco (NASDAQ: SISI) has announced the acquisition of a 51% stake in InfiniClone , a Hong Kong-based biotechnology company specializing in regenerative medicine and stem cell technology. The transaction, valued at $19,895,600 in cash plus 3,450,000 shares of Shineco common stock, was executed through Shineco's subsidiary, Shineco Life Sciences.

InfiniClone possesses 29 global patents across major markets including the US, Europe, and Asia. Their innovative technology claims to increase cell expansion throughput by 3-10x compared to existing methods and reduce production costs by over 60%. The company's proprietary methods could potentially reduce treatment preparation time for conditions like Parkinson's, Alzheimer's, and stroke from months to weeks.

The acquisition marks Shineco's strategic entry into stem cell technology and regenerative medicine, with the company aiming to accelerate InfiniClone's technology transition from laboratory to clinical applications.

Positive

• Acquisition of 51% stake provides immediate entry into high-value regenerative medicine market
• Portfolio of 29 global patents across major markets ensures strong intellectual property protection
• Technology claims 60% cost reduction in cell production
• 3-10x improvement in cell expansion throughput efficiency
• Significant reduction in treatment preparation time from months to weeks

Negative

• Substantial cash outlay of $19,895,600 impacts company's cash reserves
• Share dilution due to issuance of 3,450,000 new common shares
• Technology benefits still in development phase, not yet proven in clinical settings

Insights

Financial Analyst

Shineco's acquisition of InfiniClone represents a major financial commitment at 1.5x their market cap with significant dilution for existing shareholders.

Shineco's acquisition of a 51% stake in InfiniClone represents a major financial commitment and strategic pivot. The deal terms - $19.9 million in cash plus 3.45 million shares of common stock - are particularly notable given Shineco's current market cap of approximately $14.5 million. At the current share price of $0.7905, the equity component adds approximately $2.73 million, bringing the total consideration to roughly $22.6 million.

This transaction structure raises immediate questions about financing. The cash component alone exceeds Shineco's entire market capitalization, though the article doesn't disclose how this will be funded. Additionally, the equity component will result in significant dilution for existing shareholders, as 3.45 million new shares represents a substantial increase to the existing share count.

The acquisition marks Shineco's entry into the regenerative medicine field, a substantial departure from its current focus on diagnostic medical products. While InfiniClone's patent portfolio (29 global patents) suggests strong intellectual property protection, the article provides no information about InfiniClone's current revenue, development stage, or timeline to commercialization.

From a financial perspective, this represents a transformative bet for Shineco, with the acquisition valued at more than 1.5x its current market cap. Without details on InfiniClone's financial metrics or commercialization status, assessing the potential return on investment remains challenging. The transaction suggests Shineco sees tremendous value potential in InfiniClone's technology, but also introduces substantial execution risk as they work to integrate and commercialize these new capabilities.

Biotechnology Expert

Shineco acquires promising stem cell technology with efficiency claims that could revolutionize treatment of neurological conditions if clinically validated.

Shineco's acquisition of a majority stake in InfiniClone signals a strategic expansion into regenerative medicine focused on induced pluripotent stem cell (iPSC) technology. InfiniClone's intellectual property position appears substantial, with 29 global patents spanning major markets including the US, Europe, and Asia.

The company's core technological advantages center on scalability and efficiency improvements in stem cell production. Their microcarrier technology and iPSC library management approaches reportedly increase cell expansion throughput by 3-10x while reducing production costs by over 60% compared to traditional methods. For perspective, this addresses one of the fundamental challenges in regenerative medicine: producing sufficient quantities of clinical-grade cells cost-effectively.

Particularly noteworthy is InfiniClone's claim regarding accelerated production timelines for treating neurological conditions like Parkinson's, Alzheimer's, and stroke. The ability to produce functional neurons in weeks rather than months could significantly impact treatment accessibility if these claims are validated in clinical settings.

The technical leadership appears credible, with Dr. Lim Kah Meng bringing over 20 years of relevant research experience and a track record of founding multiple biotechnology companies. However, the article doesn't mention clinical validation status, regulatory approvals, or commercialization timelines - all critical factors in the stem cell therapy landscape.

This acquisition represents Shineco's entry into a highly specialized field with different regulatory pathways and commercialization challenges than their existing diagnostic products business. While the technology shows promise, the path from laboratory to approved clinical applications typically involves extensive validation, regulatory review, and capital investment not addressed in the announcement.

Expanding the Frontiers of Regenerative Medicine

BEIJING, April 23, 2025 (GLOBE NEWSWIRE) -- Shineco, Inc. ("Shineco" or the "Company"; NASDAQ: SISI), a provider of innovative diagnostic medical products and related medical devices, announced today that on April 22, 2025, its subsidiary, Shineco Life Sciences Group Hong Kong Limited ("Shineco Life Sciences"), entered into a Share Purchase Agreement (the "SPA") with Dr. Lim Kah Meng (the "Seller") to acquire 51% of the equity interest in InfiniClone Limited, a company incorporated under the laws of Hong Kong that has been wholly owned held by Dr. Lim ("InfiniClone"). InfiniClone is a biotechnology company focusing on the field of regenerative medicine. Its main business covers a variety of fields, from basic research to commercial applications, with a focus on induced pluripotent stem cell technology, regenerative medicine applications and the development of cosmeceuticals.

Pursuant to the SPA, Shineco Life Sciences will acquire a 51% equity interest in InfiniClone. In consideration of the acquisition, Shineco Life Science shall pay the Seller $19,895,600 in cash and the Company shall issue and transfer 3,450,000 shares of the Company’s common stock to the Seller, subject to the terms and conditions set forth in the SPA.

InfiniClone has 29 global patents, including five invention patents, that cover major markets such as the US, Europe (the UK, Germany, France and Switzerland), and Asia (Japan, China and Singapore), which it believes gives it a competitive advantage in the field of stem cell technology. Its core technologies include cell reprogramming technology, stem cell culture based on microcarrier technology, and the establishment and management of induced pluripotent stem cells (iPSC) libraries, which it believes can increase the throughput of cell expansion by three to ten times that of existing technologies. While traditional stem cell cultures rely on expensive manual operations and consumables, InfiniClone believes its technology has the potential to significantly reduce labor and material inputs, reducing the production cost per cell by more than 60% and establishing a foundation for large-scale clinical applications. For example, in treating Parkinson's, Alzheimer’s and stroke, traditional methods require months to grow a sufficient number of functional neurons, while InfiniClone’s technology is expected to shorten this cycle to just a few weeks, substantially reducing the time for patients to receive treatment.

InfiniClone's founder, Dr. Lim Kah Meng, is a Doctor of Biomedical Sciences from the National University of Singapore and is a Singaporean scientist, entrepreneur and biomedical expert with over 20 years of molecular research experience in stem cell research, regenerative medicine and neuro medicine therapies. In addition, Dr. Lim is the founder of a number of biotechnology companies, including Gene Oasis PTE. LTD., Zenzic Oasis PTE. LTD., BetaLife PTE. LTD. and CanniOasis PTE. LTD. with these companies having a differentiated focus on cell therapy, stem cell production and personalized medicine.

Jennifer Zhan, the CEO of Shineco, commented, "The acquisition of a majority position of InfiniClone is a key milestone for Shineco as it launches our entry into the field of stem cell technology and regenerative medicine. InfiniClone’s unique technology, global patent protection and Dr. Lim's professional capabilities represent core competitiveness in a high-value-added medical space, and we believe that Shineco can accelerate the transformation process of InfiniClone’s technology from laboratory to clinic. We look forward to working together with InfiniClone to solve the treatment problems of Parkinson's, Alzheimer’s, stroke, and other major diseases, and provide innovative solutions for patients around the world.”

More complete information of the SPA is set forth in the Form 8-K and its exhibits filed with the Securities and Exchange Commission on April 23, 2025.

About Shineco Corporation

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, impact of the COVID-19 pandemic, 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.

For more information, please contact:
Shineco, Inc.
secretary@shineco.tech 
Mobile: +86-010-68130220

Precept Investor Relations LLC
David J. Rudnick
david.rudnick@preceptir.com 
Mobile: +1-646-694-8538

FAQ

What is the total value of Shineco's (SISI) acquisition of InfiniClone?

Shineco is acquiring 51% of InfiniClone for $19,895,600 in cash plus 3,450,000 shares of Shineco common stock.

How many patents does InfiniClone hold and in which markets?

InfiniClone holds 29 global patents, including 5 invention patents, covering the US, Europe (UK, Germany, France, Switzerland), and Asia (Japan, China, Singapore).

What cost reduction does InfiniClone's stem cell technology claim to achieve?

InfiniClone's technology claims to reduce production cost per cell by more than 60% compared to traditional stem cell cultures.

How will SISI's acquisition of InfiniClone impact treatment times for neurological conditions?

The technology is expected to reduce treatment preparation time for conditions like Parkinson's, Alzheimer's, and stroke from months to just a few weeks.

What is the efficiency improvement claimed by InfiniClone's cell expansion technology?

InfiniClone's technology claims to increase the throughput of cell expansion by three to ten times compared to existing technologies.