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BEIJING - Shineco, Inc. (NASDAQ:SISI), a provider of diagnostic medical products and related medical devices with a market capitalization of just $6.53 million, announced Thursday that its Board of Directors has approved a 50:1 reverse stock split of the company’s common stock, effective August 11, 2025. The company’s stock, which has lost over 96% of its value year-to-date, currently trades at $0.15. InvestingPro analysis indicates the stock is trading below its Fair Value.
The reverse split will reduce Shineco’s outstanding shares from approximately 45.7 million to about 914,455 shares. The company’s stock will continue trading on the Nasdaq Capital Market under the same "SISI" symbol but with a new CUSIP number. According to InvestingPro data, the company faces significant financial challenges, with a weak Financial Health Score of 1.44 out of 5 and negative earnings of $5.94 per share over the last twelve months.
According to the company’s statement, the action aims to bring Shineco into compliance with Nasdaq’s minimum bid price requirement for continued listing. Shareholders had previously approved a reverse split ratio between 25:1 and 60:1 at a meeting on July 3.
The split will automatically convert every fifty current shares into one new share, with any fractional shares rounded up to the next whole share. Proportionate adjustments will be made to the company’s outstanding equity awards and shares issuable under equity incentive plans.
Shareholders holding shares electronically in book-entry form will not need to take action, while those holding physical certificates will receive instructions from the company’s transfer agent on how to exchange their shares.
Shineco noted in its press release that despite implementing the reverse split, there is no guarantee that the company will maintain compliance with Nasdaq’s listing requirements or that Nasdaq will make a positive determination to continue its listing. InvestingPro subscribers have access to 15 additional key insights about Shineco’s financial health and market performance, crucial for understanding the full scope of investment risks.
In other recent news, Shineco, Inc. has completed a private placement of common stock, raising $13.5 million by issuing 18,000,000 shares to non-U.S. investors at $0.75 per share. This transaction, completed on July 2, 2025, was conducted under a securities purchase agreement previously disclosed by the company. The shares were sold in an unregistered offering, as outlined in a recent SEC filing by Shineco. Additionally, Shineco has announced a stock purchase program initiated by its CEO, Jennifer Zhan, and CFO, Sai (Sam) Wang. They plan to acquire up to $2 million worth of Shineco’s common stock, with a purchase price capped at $1.50 per share. This initiative indicates the executives’ confidence in the company’s shares. The stock purchase will occur through open market transactions, with Zhan and Wang using their personal funds.
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