[8-K] Shineco, Inc. Reports Material Event

Rhea-AI Filing Summary

Shineco, Inc. (Nasdaq: SISI) has received a Nasdaq staff determination letter indicating non-compliance with the minimum bid-price rule and faces imminent trading suspension. The notice, dated 16 June 2025, cites failure to meet the US$1.00 bid-price requirement under Nasdaq Listing Rule 5550(a)(2). Because the company already executed a reverse stock split within the past 12 months, Rule 5810(c)(3)(A)(iv) renders it ineligible for an additional 180-day grace period.

Unless Shineco appeals, Nasdaq will suspend trading on 25 June 2025 and file Form 25-NSE to remove SISI from listing and registration. The company has until 23 June 2025 to request a hearing before Nasdaq’s Hearings Panel. Shineco states it will submit the hearing request; this automatically stays the suspension and any delisting action until the panel reaches a decision or grants additional time.

The company emphasizes that its underlying operations and the ability to trade its shares on other venues are currently unaffected by the letter. However, investors face heightened liquidity and pricing risk should Nasdaq ultimately delist the shares.

Positive

• Appeal filing automatically stays the trading suspension, giving Shineco additional time to present its case and seek remedies without immediate delisting.

Negative

• Nasdaq non-compliance notice for minimum bid-price rule 5550(a)(2).
• No eligibility for standard 180-day cure period due to prior reverse split within one year.
• Scheduled trading suspension on 25 June 2025 and planned Form 25-NSE filing, threatening migration to OTC markets.

Insights

Financial Analyst

TL;DR: Nasdaq delisting threat heightens liquidity risk; appeal buys time but outcome uncertain—materially negative for equity value.

Nasdaq’s determination removes Shineco’s last compliance avenue because a reverse split has already been used within 12 months. Suspension scheduled for 25 June means loss of exchange visibility and likely wider bid/ask spreads if delisted to OTC. Although the hearing request stays the process, panel reversals are statistically rare. Without a fundamental catalyst to lift the share price above US$1.00, shareholders face dilution risk via further corporate actions or diminished capital-market access. Overall impact is clearly negative.

Corporate Governance Expert

TL;DR: Governance focus shifts to compliance strategy; prior reverse split limits options, signaling weak board remediation.

The board already executed a reverse split yet failed to sustain compliance—this raises questions about strategic planning and investor communication. While the prompt appeal fulfills fiduciary duty by preserving listing status temporarily, it does not address the underlying share-price weakness. Governance risk increases as potential OTC migration could erode shareholder protections afforded by Nasdaq rules. Monitoring of future corporate actions and disclosures is warranted.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES AND EXCHANGE ACT OF 1934

Date of report (date of earliest event reported): June 16, 2025

SHINECO, INC.

(Exact name of registrant as specified in its charter)

Delaware		001-37776		52-2175898
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(IRS Employer Identification No.)

Room 1707, Block D, Modern City SOHO,

No. 88, Jianguo Road, Chaoyang District,
Beijing, People’s Republic of China, 100022

(Address of principal executive offices)

Registrant’s telephone number, including area code: (+86) 10-87227366

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each Class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock		SISI		The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

On June 16, 2025, Shineco Inc. (the “Company”) received a staff determination letter (the “Letter”) from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) notifying the Company that it is not in compliance with the minimum bid price requirement as set forth under Nasdaq Listing Rule 5550(a)(2) for continued listing on Nasdaq. Furthermore, pursuant to Listing Rule 5810(c)(3)(A)(iv), the Company is not eligible for any compliance period, since the Company has effected a reverse stock split over the prior one-year period. The Company’s securities will be suspended from trading on The Nasdaq Capital Market at the opening of business on June 25, 2025, and a Form 25-NSE will be filed with the U.S. Securities and Exchange Commission (the “SEC”), which will remove the Company’s securities from listing and registration on The Nasdaq Stock Market (the “Suspension”), unless the Company requests an appeal of such determination to Nasdaq’s Hearings Panel (the “Panel”) by June 23, 2025.

The Company’s operations or trading are not affected by the receipt of the Letter. The Company will be submitting a hearing request form to appeal timely Nasdaq’s determination to the Panel, pursuant to the procedures set forth in the Nasdaq Listing Rule 5800 Series. The Company’s hearing request will stay the Suspension and any further delisting actions, pending a Hearing or any additional time permitted by the Hearings Panel.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Shineco, Inc.
Date: June 20, 2025	By:	/s/ Jennifer Zhan
		Jennifer Zhan, Chief Executive Officer

FAQ

Why did Shineco (SISI) receive a Nasdaq delisting notice?

Nasdaq determined that Shineco’s share price stayed below US$1.00, breaching Listing Rule 5550(a)(2).

When will SISI trading be suspended if no appeal succeeds?

25 June 2025, when Nasdaq plans to halt trading and file Form 25-NSE.

Can Shineco regain compliance with a new 180-day period?

No. A reverse split within the past year disqualifies the company from the standard extension.

What is Shineco doing to avoid delisting?

The company will submit a hearing request by 23 June 2025; this stays delisting pending the panel’s decision.

Does the delisting notice affect Shineco’s operations?

Management states that the notice does not impact day-to-day operations or current share trading outside Nasdaq.