Shineco Announces Pricing of $2 Million Underwritten Public Offering

Rhea-AI Summary

Shineco announced the pricing of its underwritten public offering of 1,869,160 shares of common stock at $1.07 per share, aiming to raise approximately $2 million before underwriting discounts and expenses. The offering includes a 45-day option for underwriters to purchase up to an additional 280,374 shares to cover over-allotments. The closing is expected on July 15, 2024, subject to customary conditions. EF Hutton is the sole book-running manager. The shares are offered under an effective shelf registration statement filed with the SEC. This press release is not an offer to sell or solicit the purchase of these securities.

Positive

• The company aims to raise approximately $2 million in gross proceeds.
• The offering includes a 45-day option for underwriters to purchase additional shares, potentially increasing total proceeds.

Negative

• Potential shareholder dilution due to the issuance of new shares.
• Offering expenses will reduce the net proceeds below $2 million.

Financial Analyst

Shineco's recent public offering is a notable event for retail investors to consider. The company aims to raise approximately $2 million through the sale of 1,869,160 shares at $1.07 per share. This indicates a dilution of current shareholders' equity, which could affect the stock price in the short term as the market adjusts to the increased share count.

For perspective, in such offerings, companies typically aim to leverage funds for strategic initiatives, such as expansion or R&D. While the specifics of Shineco's plans were not disclosed, investors should monitor the use of these proceeds to gauge potential long-term benefits.

It's essential to note the underwriters' 45-day option to purchase additional shares, which could further increase dilution if exercised. Investors should weigh this potential with the company's intended use of funds to determine the net impact on future earnings and growth potential.

Given the current market conditions and Shineco's recent stock performance, this offering could be seen as the company leveraging a favorable market or an urgent need for funds. The offering price of $1.07 per share might also reflect current valuation metrics, which could be a critical factor for investors assessing the attractiveness of this offering.

Market Research Analyst

From a market perspective, Shineco's offering reflects broader market trends where companies in the medical diagnostic sector seek to capitalize on investor interest due to the ongoing global focus on healthcare advancements. The proceeds from this offering could be strategically employed in R&D or in scaling operations to meet increasing market demands, potentially driving future growth.

Investors should consider the competitive landscape and regulatory environment in the medical diagnostics market. Shineco's ability to differentiate its products and maintain compliance with regulatory standards will be critical in leveraging the newly raised funds effectively.

Additionally, EF Hutton LLC's role as the sole book-running manager highlights institutional confidence, which may provide some reassurance to retail investors about the credibility and execution of this offering. However, it's important to keep an eye on how Shineco communicates its strategic use of these funds post-offering, as transparency will be key to maintaining investor confidence.

Beijing, July 12, 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 pricing of its underwritten public offering of 1,869,160 shares of its common stock at a public offering price of $1.07 per share of common stock, for aggregate gross proceeds of approximately $2 million, prior to deducting underwriting discounts and other offering expenses. In addition, the Company has granted the underwriters a 45-day option to purchase up to an additional 280,374 shares of common stock at the public offering price per share, less the underwriting discounts to cover over-allotments, if any. The offering is expected to close on July 15, 2024, subject to satisfaction of customary closing conditions.

EF Hutton LLC is acting as the sole book-running manager for the offering.

The common stock is being 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 is being 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 will be filed with the SEC and will form a part of the effective registration statement. A preliminary prospectus supplement and accompanying prospectus relating to this offering have been filed with the SEC.

Copies of the prospectus supplement and the accompanying prospectus relating to this offering may be obtained, when available, 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, will be 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

FAQ

What is the size of Shineco's public offering?

Shineco's public offering is 1,869,160 shares of common stock.

At what price is Shineco offering its shares in the public offering?

Shineco is offering its shares at a price of $1.07 per share.

How much does Shineco aim to raise from the public offering?

Shineco aims to raise approximately $2 million before underwriting discounts and expenses.

Who is managing Shineco's public offering?

EF Hutton is acting as the sole book-running manager for Shineco's public offering.

When is Shineco's public offering expected to close?

Shineco's public offering is expected to close on July 15, 2024, subject to customary closing conditions.

What is the stock symbol for Shineco?

The stock symbol for Shineco is SISI.

Is there an over-allotment option included in Shineco's public offering?

Yes, Shineco has granted a 45-day option for underwriters to purchase up to an additional 280,374 shares to cover over-allotments.

Where can investors obtain the prospectus for Shineco's public offering?

Investors can obtain the prospectus from the SEC's website or by contacting EF Hutton