Shineco Announces Closing of $2 Million Underwritten Public Offering
Shineco, Inc. (NASDAQ: SISI), a provider of innovative diagnostic medical products and related medical devices, has closed its underwritten public offering of 1,869,160 shares of common stock at $1.07 per share. The offering raised approximately $2 million in gross proceeds, before deducting underwriting discounts and other expenses. EF Hutton acted as the sole book-running manager for the offering.
The company has granted the underwriters a 45-day option to purchase up to an additional 280,374 shares at the public offering price, less underwriting discounts. The offering was made pursuant to an effective shelf registration statement and accompanying prospectus filed with the SEC.
- Raised approximately $2 million in gross proceeds
- Successful closing of underwritten public offering
- 45-day option granted for additional share purchase
- Potential dilution of existing shareholders' equity
- Offering price of $1.07 per share may indicate low market valuation
Insights
Shineco's recent completion of a $2 million underwritten public offering provides valuable insights into the company's current financial strategy and market positioning. The decision to issue new shares suggests that Shineco is seeking to raise capital to potentially fund ongoing operations, expansion, or other strategic initiatives.
One key consideration is the
Additionally, the granting of a 45-day option to underwriters to purchase additional shares up to 280,374 shares at the offering price could lead to further capital influx. This flexibility can be beneficial if there is strong investor demand and could also signal confidence from the underwriters in the company's prospects.
For short-term implications, investors might experience volatility in stock price as the market responds to the new share issuance. In the long term, the effectiveness of this capital raise will largely depend on Shineco's ability to deploy the funds efficiently towards profitable ventures.
From a market perspective, Shineco’s public offering and the subsequent financial increase showcase a proactive approach to secure additional funding in a competitive landscape. Given the company's focus on diagnostic medical products and devices, this capital injection could position the firm to capitalize on emerging opportunities within the healthcare sector.
However, investors should be mindful of the competitive nature of the medical devices market. Market saturation and the ability of Shineco to differentiate its products will be key factors in leveraging this new capital effectively. It is important to monitor how the company allocates these resources, whether through R&D, marketing, or strategic acquisitions, to gain a better foothold in the market.
Long-term success will hinge on Shineco's ability to innovate and stay ahead of market trends. As a retail investor, keeping an eye on upcoming product launches, market expansions and regulatory approvals will provide better insights into the potential ROI on this investment.
Beijing, July 15, 2024 (GLOBE NEWSWIRE) -- Shineco, Inc. (“Shineco” or the “Company”) (NASDAQ: SISI), a provider of innovative diagnostic medical products and related medical devices, today announced the closing of its underwritten public offering of 1,869,160 shares of its common stock at a public offering price of
EF Hutton LLC acted as the sole book-running manager for the offering.
The common stock was offered by the Company pursuant to an effective shelf registration statement on Form S-3 (File No. 333-261229), which was filed with the U.S. Securities and Exchange Commission (SEC) and declared effective by the SEC on June 10, 2022, and the accompanying prospectus contained therein.
The offering was made only by means of a prospectus supplement and the accompanying prospectus that form a part of the registration statement. A prospectus supplement describing the terms of the public offering was filed with the SEC and formed a part of the effective registration statement. The final prospectus supplement and accompanying prospectus relating to this offering were filed with the SEC on July 15, 2024.
Copies of the prospectus supplement and the accompanying prospectus relating to this Offering may be obtained on the SEC’s website at http://www.sec.gov or by contacting EF Hutton LLC Attention: Syndicate Department, 590 Madison Avenue, 39th Floor, New York, NY 10022, by email at syndicate@efhutton.com, or by telephone at (212) 404-7002.
This press release shall not constitute an offer to sell or the 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 jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offer, if at all, was made only by means of the prospectus supplement and accompanying prospectus forming a part of the effective registration statement.
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 press release includes “forward-looking statements” within the meaning of U.S. federal securities laws. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue” and similar expressions are intended to identify such forward-looking statements. These statements include, among others, statements regarding the proposed public offering, and the timing of the offering. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results and, consequently, you should not rely on these forward-looking statements as predictions of future events. These forward-looking statements and factors that may cause such differences include, without limitation, the risks disclosed in the Company’s Annual Report on Form 10-K filed with the SEC on September 28, 2023, and in the Company’s other filings with the SEC. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Except as required by law, the Company disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this press release.
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
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