Shineco, Inc. to Effect 50:1 Reverse Stock Split
Shineco (Nasdaq:SISI) has announced a 50:1 reverse stock split of its common stock, effective August 11, 2025. The measure aims to comply with Nasdaq's minimum bid price requirement for continued listing. The split will reduce outstanding shares from approximately 45,722,728 to 914,455.
The company's stock will continue trading under the symbol "SISI" with a new CUSIP number (824567606). The split follows stockholder approval on July 3, 2025, which authorized a ratio between 25:1 and 60:1. Proportionate adjustments will be made to exercise prices and shares underlying equity awards. Stockholders holding shares in book-entry form need not take action, while those holding certificates will receive instructions from Transhare, the transfer agent.
["Potential compliance with Nasdaq minimum bid price requirement", "Stockholder-approved corporate action to maintain listing status", "Automatic rounding up of fractional shares benefits shareholders"]Shineco (Nasdaq:SISI) ha annunciato un reverse stock split 50:1 delle sue azioni ordinarie, che entrerà in vigore l'11 agosto 2025. Questa misura è stata adottata per rispettare il requisito minimo di prezzo per azione imposto da Nasdaq per il mantenimento della quotazione. La frazionamento ridurrà il numero di azioni in circolazione da circa 45.722.728 a 914.455.
Le azioni continueranno a essere negoziate con il simbolo "SISI" e avranno un nuovo numero CUSIP (824567606). La decisione segue l'approvazione degli azionisti del 3 luglio 2025, che ha autorizzato un rapporto compreso tra 25:1 e 60:1. Verranno effettuate modifiche proporzionali ai prezzi di esercizio e alle azioni sottostanti ai premi azionari. Gli azionisti con azioni in forma elettronica non devono intraprendere alcuna azione, mentre chi detiene certificati riceverà istruzioni da Transhare, l'agente di trasferimento.
Shineco (Nasdaq:SISI) ha anunciado una consolidación inversa de acciones 50:1 de sus acciones ordinarias, que entrará en vigor el 11 de agosto de 2025. Esta medida busca cumplir con el requisito mínimo de precio por acción de Nasdaq para mantener la cotización. La consolidación reducirá las acciones en circulación de aproximadamente 45,722,728 a 914,455.
Las acciones seguirán cotizando bajo el símbolo "SISI" con un nuevo número CUSIP (824567606). La acción fue aprobada por los accionistas el 3 de julio de 2025, autorizando una relación entre 25:1 y 60:1. Se harán ajustes proporcionales a los precios de ejercicio y a las acciones subyacentes de las recompensas de capital. Los accionistas con acciones en formato electrónico no necesitan actuar, mientras que quienes poseen certificados recibirán instrucciones de Transhare, el agente de transferencia.
Shineco (Nasdaq:SISI)는 2025년 8월 11일부로 보통주에 대해 50:1 역병합을 발표했습니다. 이 조치는 Nasdaq의 최소 입찰가 요건을 충족하여 상장 유지 목적입니다. 이번 병합으로 발행 주식 수는 약 45,722,728주에서 914,455주로 줄어듭니다.
주식은 "SISI"라는 심볼로 계속 거래되며 새로운 CUSIP 번호(824567606)가 부여됩니다. 이 병합은 2025년 7월 3일 주주 승인에 따른 것으로, 25:1에서 60:1 사이의 비율이 승인되었습니다. 행사 가격과 주식 보상에 따른 주식 수는 비례 조정됩니다. 전자등록 주주는 별도의 조치가 필요 없으며, 증서 보유 주주는 대리인인 Transhare로부터 지침을 받게 됩니다.
Shineco (Nasdaq:SISI) a annoncé un fractionnement inverse des actions au ratio de 50:1 de ses actions ordinaires, effectif à partir du 11 août 2025. Cette mesure vise à respecter l'exigence de prix minimum par action imposée par le Nasdaq pour le maintien de la cotation. Le fractionnement réduira le nombre d'actions en circulation d'environ 45 722 728 à 914 455.
Les actions continueront d'être négociées sous le symbole "SISI" avec un nouveau numéro CUSIP (824567606). Cette opération fait suite à l'approbation des actionnaires le 3 juillet 2025, qui a autorisé un ratio compris entre 25:1 et 60:1. Des ajustements proportionnels seront effectués sur les prix d'exercice et les actions sous-jacentes aux attributions d'actions. Les actionnaires détenant des actions en forme dématérialisée n'ont aucune démarche à effectuer, tandis que ceux possédant des certificats recevront des instructions de Transhare, l'agent de transfert.
Shineco (Nasdaq:SISI) hat eine Reverse Stock Split im Verhältnis 50:1 seiner Stammaktien angekündigt, die am 11. August 2025 wirksam wird. Diese Maßnahme dient der Einhaltung der Mindestgebotspreisanforderung der Nasdaq für die Fortführung der Notierung. Die Anzahl der ausstehenden Aktien wird von etwa 45.722.728 auf 914.455 reduziert.
Die Aktie wird weiterhin unter dem Symbol "SISI" gehandelt und erhält eine neue CUSIP-Nummer (824567606). Die Aktion wurde von den Aktionären am 3. Juli 2025 genehmigt und erlaubt ein Verhältnis zwischen 25:1 und 60:1. Proportionale Anpassungen werden an Ausübungspreisen und den zugrundeliegenden Aktien der Equity Awards vorgenommen. Aktionäre mit Buchaktien müssen nichts unternehmen, während Inhaber von Zertifikaten Anweisungen vom Transferagenten Transhare erhalten.
- None.
- No guarantee of maintaining Nasdaq listing despite reverse split
- Significant reduction in total outstanding shares may impact liquidity
- Historical tendency of reverse splits to be viewed negatively by market
- Risk of continued price decline post-split
Insights
Shineco's 50:1 reverse split aims to maintain Nasdaq listing by boosting share price, but signals underlying financial weakness.
Shineco's announcement of a 50:1 reverse stock split represents a significant defensive measure to maintain its Nasdaq listing. The company is implementing this split specifically to comply with Nasdaq Rule 5550(a)(2), which requires listed companies to maintain a minimum bid price of
The mechanics of the split will reduce Shineco's outstanding shares from approximately 45,722,728 to just 914,455 shares. While this action will mathematically increase the per-share price by a factor of 50, it's crucial to understand that this creates no fundamental change in company value or market capitalization.
This drastic 50:1 ratio – near the upper end of the 25:1 to 60:1 range approved by shareholders – signals severe downward pressure on Shineco's stock. The company's own cautionary language is telling: they explicitly acknowledge there's "no assurance" the stock will maintain compliance with Nasdaq requirements even after the split, nor that Nasdaq will ultimately allow continued listing.
Reverse splits of this magnitude typically reflect underlying financial distress rather than strength. While the move buys Shineco time to address fundamental issues, it doesn't resolve the root causes of the share price decline. Investors should view this as a red flag regarding the company's current financial condition and near-term prospects in its medical diagnostics and devices business.
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
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.
secretary@shineco.tech
Mobile: +86-010-68130220
Precept Investor Relations LLC
David J. Rudnick
david.rudnick@preceptir.com
Mobile: +1-646-694-8538
SOURCE: Shineco, Inc.
FAQ
When will Shineco's (SISI) 50:1 reverse stock split take effect?
How many shares will Shineco (SISI) have outstanding after the reverse split?
Why is Shineco (SISI) implementing a reverse stock split?
What happens to Shineco (SISI) shareholders' existing stock certificates?
Will Shineco's (SISI) stock symbol change after the reverse split?
