Shineco, Inc. Announces Entering into a Securities Purchase Agreement with Gross Proceeds of $7.0 Million
BEIJING, June 24, 2024 (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 June 20, 2024, the Company entered into a Securities Purchase Agreement (the "SPA") with certain non-U.S. investors (each individually, a "Purchaser," and collectively, the "Purchasers"). Pursuant to the SPA, the Company will issue up to 1,400,000 shares of its common stock (the "Shares") to the Purchasers in a private placement financing transaction (the "Offering") at an offering price of $5.00 per share. The gross proceeds of the Offering are expected to be approximately $7,000,000, before the deduction of customary expenses. The Purchasers are a former related party of the Company, who agreed to purchase 1,000,000 shares of common stock, a management member of the Company, who agreed to purchase 200,000 shares of common stock, and an individual investor who agreed to purchase 200,000 shares of common stock. The Offering is expected to close, and the Shares are expected to be issued, on or about July 31, 2024.
The Company plans to use the proceeds from this offering for working capital and general corporate purposes, further bolstering the execution of its strategic initiatives.
The Shares described above were offered in a private placement exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"), pursuant to Regulation S promulgated thereunder, and may not be offered or sold in the United States, except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
Ms. Jennifer Zhan, CEO of Shineco, said, "We are pleased to enter into the SPA with the Purchasers as the new capital will support our strategic growth plan that was developed to capitalize upon opportunities across the medical and healthcare landscape. The financing also demonstrates the confidence of management and investors in our corporate strategy, business development and growth prospects. Our operational, financing and investment strategy has but one goal: to create long-term value for our shareholders."
About Shineco, Inc.
Shineco Inc. ("Shineco" or the "Company") aims to ‘care for a healthy life 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 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 news 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 terminology such as "may", "will", "should", "could", "intend", "expect", "plan", "budget", "forecast", "anticipate", "believe", "estimate", "predict", "potential", "continue", "evaluating" or similar words. Forward-looking statements should not be relied upon because they are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Examples of forward-looking statements include, among others, statements we make regarding the innovativeness and market position of our products and services, our competitive strengths, and our expectation that the healthy meals replacement joint venture will be a competitive products in its field. You are cautioned not to rely on any forward-looking statements. Actual results may differ materially from historical results or those indicated by the forward-looking statements as a result of a variety of factors including, but not limited to, risks and uncertainties associated with the Company's ability to raise additional funding, its ability to maintain and grow its business, variability of operating results, its ability to maintain and enhance its brand, its development and introduction of new products and services, the ability to obtain all necessary regulatory approvals in the jurisdictions where it intends to market and sell its products the successful integration of acquired companies, technologies and assets into its portfolio of products and services, marketing and other business development initiatives, competition in the industry, general government regulations, economic conditions, the impact of the COVID-19 pandemic, dependence on key personnel, the ability to attract, hire and retain personnel who possess the technical skills and experience necessary to meet the requirements of its clients, and its ability to protect its intellectual property. Shineco encourages you to review other factors that may affect its future results 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 speak only as of the date of this press release, and Shineco assumes no obligation to update any forward-looking statements except as required by the applicable rules and regulations.
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
