Shineco Announces Reverse Split to Regain NASDAQ Compliance
Shineco announced a 1-for-24 reverse stock split effective November 12, 2024, primarily to maintain Nasdaq Capital Market listing compliance by meeting minimum average closing share price requirements. The company's common stock will continue trading under SISI but with a new CUSIP Number (824567507). Following the split, outstanding shares will be reduced to 1,613,898. The split affects all issued shares, stock options, and warrants, with fractional shares rounded up. No stockholder action is required, and positions will be automatically adjusted through brokers.
Shineco ha annunciato un raggruppamento azionario 1-per-24 che entrerà in vigore il 12 novembre 2024, principalmente per mantenere la conformità ai requisiti di quotazione del Nasdaq Capital Market, soddisfacendo le esigenze relative al prezzo medio di chiusura delle azioni. Le azioni ordinarie della società continueranno a essere negoziate sotto SISI, ma con un nuovo numero CUSIP (824567507). A seguito del raggruppamento, le azioni in circolazione saranno ridotte a 1.613.898. Il raggruppamento interessa tutte le azioni emesse, le opzioni su azioni e i warrant, con le azioni frazionarie arrotondate per eccesso. Non è richiesta alcuna azione da parte degli azionisti e le posizioni saranno automaticamente adeguate attraverso i broker.
Shineco anunció un consolidación de acciones de 1 por 24 que entrará en vigor el 12 de noviembre de 2024, principalmente para mantener el cumplimiento de los requisitos de cotización del Nasdaq Capital Market, cumpliendo con los requisitos mínimos de precio de cierre promedio de las acciones. Las acciones comunes de la empresa continuarán negociándose bajo SISI, pero con un nuevo número CUSIP (824567507). Tras la consolidación, las acciones en circulación se reducirán a 1.613.898. La consolidación afecta a todas las acciones emitidas, opciones sobre acciones y warrants, con las fracciones de acciones redondeadas al alza. No se requiere ninguna acción por parte de los accionistas, y las posiciones se ajustarán automáticamente a través de los corredores.
Shineco는 2024년 11월 12일부터 시행되는 1대 24 주식 병합을 발표했으며, 이는 주식의 평균 종가 요구 사항을 충족하여 Nasdaq 자본 시장 상장 요건을 유지하기 위함입니다. 회사의 보통주식은 SISI로 계속 거래되지만 새로운 CUSIP 번호(824567507)를 부여받습니다. 병합 후 발행 주식 수는 1,613,898주로 줄어듭니다. 이번 병합은 모든 발행 주식, 주식 옵션 및 워런트에 영향을 미치며, 분수 주식은 올림 처리됩니다. 주주 간의 별도 조치는 필요하지 않으며, 포지션은 브로커를 통해 자동으로 조정됩니다.
Shineco a annoncé un rachat d'actions de 1 pour 24 qui prendra effet le 12 novembre 2024, principalement pour maintenir la conformité aux exigences de cotation du Nasdaq Capital Market en respectant les exigences minimales de prix de clôture moyen des actions. Les actions ordinaires de l'entreprise continueront à être négociées sous SISI, mais avec un nouveau numéro CUSIP (824567507). Suite à l'opération, le nombre d'actions en circulation sera réduit à 1.613.898. L'opération concerne toutes les actions émises, les options d'achat d'actions et les bons de souscription, les actions fractionnaires étant arrondies à l'unité supérieure. Aucune action n'est requise de la part des actionnaires, et les positions seront automatiquement ajustées par l'intermédiaire des courtiers.
Shineco hat einen Aktienzusammenlegungs von 1 zu 24 angekündigt, der am 12. November 2024 wirksam wird, hauptsächlich um die Anforderungen an die Nasdaq Capital Market-Notierung einzuhalten, indem die Mindestanforderungen an den durchschnittlichen Schlusskurs der Aktien erfüllt werden. Die Stammaktien des Unternehmens werden weiterhin unter SISI gehandelt, jedoch mit einer neuen CUSIP-Nummer (824567507). Nach der Zusammenlegung wird die Anzahl der ausstehenden Aktien auf 1.613.898 reduziert. Die Zusammenlegung betrifft alle ausgegebenen Aktien, Aktienoptionen und Warrants, wobei Bruchstücke aufgerundet werden. Es sind keine Maßnahmen der Aktionäre erforderlich, und die Positionen werden automatisch über die Broker angepasst.
- None.
- Implementation of 1-for-24 reverse stock split indicates significant share price deterioration
- Risk of potential Nasdaq delisting due to non-compliance with minimum share price requirements
- Dilutive effect on shareholders due to rounding up of fractional shares
Insights
This reverse stock split is a critical defensive move to maintain NASDAQ listing compliance, but signals underlying financial distress. The 1-for-24 ratio is particularly aggressive, indicating severe price deterioration. The reduction from approximately 38.7 million shares to just 1.6 million shares outstanding is substantial.
While technically neutral for market capitalization, reverse splits historically correlate with negative market performance. They often trigger increased selling pressure as institutional investors view them as red flags. The automatic rounding up of fractional shares could create minor dilution, though minimal given the scale.
The maintenance of NASDAQ listing is important for access to capital markets and investor confidence, but this move doesn't address fundamental business challenges. Investors should monitor post-split trading patterns and any signs of improved financial performance.
BEIJING, Nov. 12, 2024 (GLOBE NEWSWIRE) -- Shineco Inc. (“Shineco” or the “Company”; NASDAQ: SISI), a producer of innovative diagnostic medical products and related medical devices, announced today that effective at 12:01 a.m., EDT, on November 12, 2024, the Company will effect a one-for-twenty four (1-for-24) reverse stock split of its outstanding common stock (the “Reverse Stock Split”).
The Reverse Stock Split is primarily intended to bring the Company into compliance with the minimum average closing share price requirement for maintaining its listing on the Nasdaq Capital Market. The Company’s common stock will continue to trade under the symbol “SISI”. Upon the effectiveness of the Reverse Stock Split, every twenty-four shares of issued and outstanding common stock before the open of business on November 12, 2024, will be combined into one issued and outstanding share of common stock, with no change in par value per share. The Company’s common stock will open for trading on Nasdaq on November 12, 2024, on a post-split basis but will trade under a new CUSIP Number, 824567507.
As a result of the Reverse Stock Split, the Company will have 1,613,898 shares of common stock issued and outstanding. No fractional shares will be issued as a result of the Reverse Stock Split. Any fractional shares that would result from the Reverse Stock Split will be rounded up to the nearest whole share.
The Reverse Stock Split will affect all issued and outstanding shares of the Company’s common shares, as well as the number of shares of common shares available for issuance under the Company’s stock options and warrants. In addition, the Reverse Stock Split will reduce the number of shares of common stock issuable upon the exercise of stock options and warrants outstanding immediately prior to the Reverse Stock Split and correspondingly increase the respective aggregate exercise prices. The Reverse Stock Split will affect all holders of the Company’s common stock uniformly and will not alter any stockholder’s percentage interest in the Company’s common stock, except to the extent that the Reverse Stock Split results in some stockholders experiencing an adjustment of a fractional share as described above.
Transhare Corporation is acting as the transfer and exchange agent for the Reverse Stock Split. Registered stockholders who hold shares of the Company’s common stock are not required to take any action to receive post-reverse stock split shares. Stockholders who hold their shares in brokerage accounts or in “street name” will have their positions automatically adjusted to reflect the Reverse Stock Split, subject to each broker’s particular processes, and will not be required to take any action in connection with the Reverse Stock Split.
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 product 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.
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 ratio of Shineco's (SISI) reverse stock split announced in November 2024?
How many shares will Shineco (SISI) have outstanding after the November 2024 reverse split?
Why did Shineco (SISI) implement a reverse stock split in November 2024?