Shandong Sito Bio-technology Co., Ltd. announced a private placement to issue not more than 32,175,770 A shares for gross proceeds of not more than CNY 300,000,000 on July 16, 2021. The round will see participation from not more than 35 investors. The pricing base date is the first day of the issuance period. The issue price is not less than 80% of the average price of the company’s stock during the 20 trading days prior to the pricing base date. The shares issued in the transaction is subject to a lock up period of 6 months from the closing of the transaction. The transaction has been approved by the board of directors of the company at the 3rd Meeting of the 3rd directorate and 3rd supervisory board and is subject to approval from shareholders of the company, Shenzhen Stock Exchange and the China Securities Regulatory Commission. On August 24, 2021, the Company received “Notice on Acceptance of Shandong Sito Bio-technology Co., Ltd.’s Private Placement Application Documents” (Acceptance [2021] No. 403) issued by the Shenzhen Stock Exchange, having reviewed and decided to accept private placement application.