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
News Market Reaction
On the day this news was published, SISI declined 10.01%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
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
Pursuant to the SPA, Shineco Life Sciences will acquire a
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
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?
How many patents does InfiniClone hold and in which markets?
What cost reduction does InfiniClone's stem cell technology claim to achieve?
How will SISI's acquisition of InfiniClone impact treatment times for neurological conditions?
What is the efficiency improvement claimed by InfiniClone's cell expansion technology?
