aibioChina SXT ends purchasers' right to buy up to $12 million more shares
Tickers SXTC
China SXT and the purchasers in its October 8, 2026 registered direct offering agreed to cancel, in full, a right to buy up to $12 million more shares. The company says the offering's securities already issued are not affected.
Key facts
- Company
- China SXT Pharmaceuticals, Inc. (NASDAQ: SXTC)
- News type
- Financings
- Primary source
- China SXT Pharmaceuticals, Inc. 6-K (2026-10-21)
The termination
China SXT Pharmaceuticals, Inc. (Nasdaq: SXTC) said on October 21, 2026, in a press release furnished on Form 6-K, that it signed a termination letter agreement with the purchasers in its registered direct offering announced on October 8, 2026. A registered direct offering sells registered securities straight to selected investors.
The agreement ends in full the additional purchase right in Section 2.4 of the securities purchase agreement for that offering. The right allowed the purchasers, during the 30-day period after the offering closed, to elect to buy up to an additional $12 million of Class A ordinary shares, pre-funded warrants or both, on the same terms as the offering. With the termination, the purchasers have no right, claim or entitlement to make that additional purchase.
The company says all other provisions of the purchase agreement and the other transaction documents remain unchanged and in force. It also says the termination does not affect the securities already issued in the offering.
What the company gives up
The right belonged to the purchasers, so the company could not have forced any further sale. With it gone, the company can no longer count on up to $12 million of further funding from the same purchasers on the offering's terms. The release does not say why the right was ended, whether either side paid for the change, or whether the company needed the money.
The release names no bank, placement agent, underwriter or financial advisor for the October 8 offering. It also names no counsel. It does not name the purchasers, and it does not state the size, price or share count of the October 8 offering itself.
The company
China SXT was founded in 2005 and is based in Taizhou City, Jiangsu Province, China. The release describes it as an innovative pharmaceutical company that researches, develops, manufactures, markets and sells traditional Chinese medicine pieces, which are processed for ready use.
The company is a British Virgin Islands business company. Its annual report on Form 20-F, filed July 1, 2026 for the fiscal year ended March 31, 2026, says its Class A ordinary shares have traded on the Nasdaq Capital Market under SXTC since January 3, 2019. The same report says the company has never paid a dividend and intends to keep its earnings to finance operations.
The report also describes a dual-class structure. Shareholders approved Class B ordinary shares on July 28, 2025, and each Class B share carries 50 votes on any shareholder resolution. The filing says 532 shares held by Feng Zhou Management Limited were re-designated as Class B. The company has also carried out reverse splits: a 1-for-25 split that took effect on the market in October 2023, and a 1-for-8 split on February 25, 2025.
The financial position
For the fiscal year ended March 31, 2026, the company reported a net loss of $6.2 million, up from $3.3 million a year earlier. Cash used in operations was $4.0 million, compared with $2.3 million. Year-end cash and cash equivalents were $28.2 million, against $18.1 million a year before.
These annual figures predate the October offering. The cash that the offering brought in is not stated in the release, so the company's position after the October 8 deal cannot be measured from these documents.
What comes next
The release gives no closing date for the October 8 offering, so the end of the 30-day window cannot be fixed from it. The filings do not describe any other arrangement to raise money.