苏轩堂美股招股说明书(2023-03-27版)

424B71ea175724-424b7chinasxt.htm424B7 FiledpursuanttoRule424(b)(7)RegistrationNo.333-252664 ProspectusSupplement (ToProspectusdatedFebruary2,2021,asamended) $1,374,712ofordinarysharesissuableuponconversionofanunsecuredconvertiblepromissorynote,offeredbytheSellingShareholder of ChinaSXTPharmaceuticals,Inc. Thisprospectusrelatestotheofferandsaleofupto$1,374,712ofordinaryshares,parvalue $0.08each,issuableuponconversionofanunsecuredconvertiblepromissorynote(the“Note”).OurordinarysharesareissuableuponconversionoftheNotewhicharecurrentlyheldbytheSellingShareholdernamedinthisprospectus.WeissuedtheNotepursuantasecuritiespurchaseagreement(the“PurchaseAgreement”),datedMarch7,2023.ThesharesissuableuponconversionoftheNotemaybeofferedforsalefromtimetotimebytheSellingShareholder.Wewillnotreceiveproceedsfromthesaleoftheunderlyingordinaryshares. TheSellingShareholdermaysellanyorallofthesharesonanystockexchange,marketortradingfacilityonwhichtheSharesaretradedorinprivatelynegotiatedtransactionsatfixedpricesthatmaybechanged,atmarketpricesprevailingatthetimeofsaleoratnegotiatedprices.InformationontheSellingShareholderandthetimesandmannersinwhichtheymayofferandselloursharesisdescribedunderthesectionsentitled“SellingShareholders”and“PlanofDistribution”inthisprospectus.Whilewewillbearallcosts,expensesandfeesinconnectionwiththeregistrationoftheShares,wewillnotreceiveanyoftheproceedsfromthesaleofoursharesbytheSellingShareholder. OnMarch20,2023,theaggregatemarketvalueofourordinarysharesheldbynon-affiliateswasapproximately$4,124,136.58,basedon10,446,248OrdinarySharesoutstanding,6,990,062ofwhichareheldbynon-affiliates,andaperOrdinarySharepriceof$0.59basedontheclosingsalepriceofourOrdinarySharesonNasdaqonFebruary3,2023.PursuanttoGeneralInstructionI.B.5ofFormF-3,innoeventwillwesellthesecuritiescoveredherebyinapublicprimaryofferingwithavalueexceedingmorethanone-thirdoftheaggregatemarketvalueofourordinarysharesinany12-monthperiodsolongastheaggregatemarketvalueofouroutstandingOrdinarySharesheldbynon-affiliatesremainsbelow $75,000,000.Duringthe12calendarmonthspriortoandincludingthedateofthisprospectus,wehavenotsoldanyordinarysharespursuanttoGeneralInstructionI.B.5ofFormF-3. OurordinarysharesarelistedonTheNasdaqCapitalMarket,orNasdaq,underthesymbol“SXTC”.OnMarch21,2023,thelastreportedpriceofourordinaryshareonNasdaqwas$0.32perordinaryshare. WeareanoffshoreholdingcompanyincorporatedinBritishVirginIslands,conductingallofourbusinessthroughoursubsidiariesandvariableinterestsentity,JiangsuTaizhouSuxuantangPharmaceuticalCo.,Ltd.(“TaizhouSuxuantang”orthe“VIE”)inChina.NeitherwenoroursubsidiariesownanyshareinTaizhouSuxuantang.Instead,ourwholly-ownedsubsidiary,TaizhouSuxantangBiotechnologyCo.Ltd.(the“WFOE”),TaizhouSuxuantang,andTaizhouSuxuantang’sshareholdersenteredintoaseriesof contractualarrangements,orthe“VIEAgreements”,include(i)certainpowerofattorneyagreementsandequityinterestpledgeagreement,whichprovideWFOEeffectivecontroloverTaizhouSuxuantang;(ii)anexclusivetechnicalconsultingandserviceagreementwhichallowsWFOEtoreceivesubstantiallyalloftheeconomicbenefitsfromTaizhouSuxuantang;and(iii)certainexclusiveequityinterestpurchaseagreementswhichprovideWFOEwithanexclusiveoptiontopurchaseallorpartoftheequityinterestsinand/orassetsofTaizhouSuxuantangwhenandtotheextentpermittedbyPRClaws.ThroughtheVIEAgreementsamongWFOE,TaizhouSuxuantangandTaizhouSuxuantang’sshareholders,weareregardedastheprimarybeneficiaryofTaizhouSuxuantangforaccountingpurpose,and,therefore,weareabletoconsolidatethefinancialresultsofTaizhouSuxuantanginourconsolidatedfinancialstatementsinaccordancewithU.S.GAAP.However,theVIEstructurecannotcompletelyreplicateaforeigninvestmentinChina-basedcompanies,astheinvestorswillnotandmayneverdirectlyholdequityinterestsintheChineseoperatingentities.Instead,theVIEstructureprovidescontractualexposuretoforeigninvestmentinus.Althoughwetookeveryprecautionavailabletoeffectivelyenforcethecontractualandcorporaterelationshipabove,theseVIEAgreementsmaystillbelesseffectivethandirectownershipandthatwemayincursubstantialcoststoenforcethetermsofthearrangements.BecausewedonotdirectlyholdequityinterestsinTaizhouSuxuantang,wearesubjecttorisksduetouncertaintyoftheinterpretationandtheapplicationofthePRClawsandregulations,includingbutnotlimitedtolimitationonforeignownershipofinternettechnologycompanies,regulatoryreviewofoversealistingofPRCcompaniesthroughaspecialpurposevehicle,andthevalidityandenforcementoftheVIEAgreements.WearealsosubjecttotherisksofuncertaintyaboutanyfutureactionsofthePRCgovernmentinthisregardthatcoulddisallowtheVIEstructure,whichwouldlikelyresultinamaterialchangeinouroperationsandthevalueofOrdinarySharesmaydepreciatesignificantlyorbecomeworthless. WearesubjecttocertainlegalandoperationalrisksassociatedwithbeingbasedinChina.PRClawsandregulationsgoverningourcurrentbusinessoperationsaresometimesvagueanduncertain,andasaresulttheserisksmayresultinmaterialchangesintheoperationsofoursubsidiaries,significantdepreciationofthevalueofourOrdinaryShares,oracompletehi