SHINECO, INC. (NASDAQ:TYHT) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement.
On March 20, 2019 (the “Execution Date”), Shineco Inc. (the “Company”) entered into an industrial cannabis technology transfer agreement with the Hemp Research Institute of the Chinese Academy of Agricultural Sciences (“HRI”), to which HRI agreed to transfer use rights and intellectual property rights of its newly bred high CBD industrial cannabis strains, the M11 line, to the Company (the “Use Rights”). The technology transfer agreement is effective for two years commencing from March 20, 2019. The Company agreed to pay an aggregate of RMB 5 million for the Use Rights, payable in three installments of RMB 2.75 million, RMB 1.25 million and RMB 1 million, respectively, due five business days from the Execution Date, five business days from the successful validation of certain technical specifications, and five business days from the Company obtaining strain certification, respectively.
On March 20, 2019, the Company entered into an industrial cannabis apocynum planting technical service agreement with HRI (the “Technical Service Agreement”), to which HRI agreed to provide the Company with proposals for farmland infrastructure maintenance, agricultural product procurement and industrial cannabis, apocynum strain selection and planting. Additionally, HRI also agreed to guide the Company in its planting, field management and harvest during the growing period for industrial cannabis and apocynum. The Company agreed to pay an aggregate of RMB 500,000 to HRI under the Technical Service Agreement, payable in three installments of RMB 250,000, RMB 150,000 and RMB 100,000, respectively, due April 1, 2019, September 1, 2019 and November 1, 2019, respectively.
Item 7.01 Regulation FD Disclosure.
On March 20, 2019, the Company issued a press release titled “Shineco, Inc. Establishes Subsidiary to Capture Industrial Cannabis Market.” A copy of the press release is furnished herewith as Exhibit 99.1.
The information in this Current Report on Form 8-K under Item 7.01, including the accompanying press release, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by reference to such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description |
| 99.1 | Press release dated March 20, 2019 |
SHINECO, INC. Exhibit
EX-99.1 2 f8k032019ex99-1_shineco.htm PRESS RELEASE DATED MARCH 20,…
To view the full exhibit click here
About SHINECO, INC. (NASDAQ:TYHT)
Shineco, Inc. is a holding company. The Company provides health and well-being focused plant-based products by using its subsidiaries’ and variable interest entities’ vertically- and horizontally-integrated production, distribution and sales channels. The Company operates through three segments: developing, manufacturing and distributing of specialized fabrics, textile products and other by-products derived from an indigenous Chinese plant called Apocynum Venetum, known as Bluish Dogbane (Luobuma); planting, processing and distributing of traditional Chinese medicinal herbal products, as well as other pharmaceutical products (Herbal products), and planting, processing and distributing of green and organic agricultural produce, as well as growing and cultivating of Chinese Yew trees (Agricultural products). It utilizes engineering technologies and biotechnologies to produce, among other products, Chinese herbal medicines, organic agricultural produce and specialized textiles.
