TSX runs higher on rate cut expectations
BEIJING - Shineco Inc. (NASDAQ:SISI), a micro-cap biotech company with a market value of $4.46 million, announced on Wednesday it has entered a cooperation agreement with blockchain infrastructure provider Plus Me Limited to tokenize biological cellular assets using blockchain technology. According to InvestingPro analysis, the company operates with challenging financials, including significant debt and rapid cash burn, though its shares currently trade at an attractive Price/Book multiple of 0.25.
The agreement enables digital custody of Shineco’s mesenchymal stem cells on the Ethereum blockchain, with smart contracts securing ownership rights through non-fungible digital identifiers to ensure traceability and compliance.
Under the partnership, Plus Me will issue "Cell Infusion Redemption Tokens" that can be redeemed at Shineco-affiliated therapy centers. The tokens follow ERC-1400/ERC-20 standards and are programmatically burned upon redemption.
To support this initiative, Shineco acquired a 51% stake in Xi’an Dong’ao Health Management Co., a specialist in cryogenic cell storage and clinical applications, on August 18. This acquisition provides the physical infrastructure needed for token redemption.
The collaboration aims to create what the companies describe as an open-cell industry ecosystem, with Plus Me providing tokenization software-as-a-service to third parties while Shineco opens its physical custody network.
"This marks the birth of a decentralized biotech economy where every cell becomes a liquid, programmable asset," said Jennifer Zhan, CEO of Shineco, according to the press release.
Shineco focuses on induced pluripotent stem cell technology platforms and extracellular vesicle-derived products. The company states this tokenization framework addresses industry challenges including high user costs, product provenance verification, and illiquid asset pools.
The announcement represents one of the first applications of blockchain technology for tokenizing biological cellular assets in the commercial biotech sector.
In other recent news, Shineco, Inc. completed a $13.5 million private placement of common stock, issuing 18,000,000 shares to non-U.S. investors at $0.75 per share. This transaction was conducted through a securities purchase agreement and resulted in gross proceeds before customary expenses. Additionally, Shineco announced a 50:1 reverse stock split to maintain its Nasdaq listing, effective August 11, 2025, which will reduce its outstanding shares significantly. The stock will continue to trade under the same symbol but with a new CUSIP number.
Shineco has also launched a new Biological Cell Digital Business Division, integrating its biological cell assets with blockchain technology. Lin Hongguang, with expertise in digital asset compliance, has been appointed as the General Manager of this division. Furthermore, Shineco executives, including CEO Jennifer Zhan and CFO Sai (Sam) Wang, have initiated a stock purchase program to acquire up to $2 million worth of common stock. The purchases will be conducted in open market transactions, reflecting the executives’ confidence in the company’s shares.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.