Herbal medicine stock with no sales rallies 64,000%
[NEW YORK] A biotech stock focused on herbal medicine has surged by more than 64,000 per cent so far this year and yet, the company itself has made zero revenue – much less turned a profit.
The unbelievable rally has transformed Regencell Bioscience Holdings Limited, a penny stock as recently as April, to one worth more than US$20 billion in market value. A year ago, the stock had a market capitalisation of just US$53 million. This is despite the company having a net loss of US$4.4 million for its fiscal year that ended June 2024, a 28 per cent decrease from the previous year.
Earlier this month the company said its board approved a 38-for-1 stock split. When the split took effect on Monday (Jun 16), shares rose as much as 434 per cent – their biggest one-day jump ever – to a record high, triggering more than 10 volatility halts.
Shares of the company have been on a bizarre, 640-fold tear in 2025, with little to no news from the firm. The Hong Kong-based firm, which debuted on the Nasdaq Capital Market in 2021, is in the research and development stage and has not generated any revenue since inception, according to its most-recent annual filing with the US Securities and Exchange Commission (SEC).
A representative for Regencell did not immediately respond to a Bloomberg News request for comment.
Incorporated in the Cayman Islands, the firm aims to treat neurological disorders such as ADHD and autism spectrum disorder through traditional herb-based medicines, according to its website. Its traditional Chinese medicine (TCM) formula, which forms the basis of its product candidates, 'contains only natural ingredients without any synthetic components'.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
'We have not generated revenue from any TCM formulae candidates or applied for any regulatory approvals, nor have distribution capabilities or experience or any granted patents or pending patent applications and may never be profitable,' the company said in an October filing.
The company also made its foray into treatments for Covid-19, conducting trials in 2022 for an 'holistic approach' with its experimental therapy. Regencell said data from a 2022 trial showed the treatment was effective in reducing and eliminating Covid-19 symptoms within six days, although the results were yet to be peer-reviewed.
The firm has funded its operations so far, primarily from shareholder loans and proceeds from its initial public offering (IPO), the SEC filing showed. It said its gross proceeds from its IPO were US$21.85 million, with additional net proceeds of US$2.85 million from the issue of the over allotment shares and exercise of 325,000 shares.
One potential reason for the outsized swings in Regencell shares: its tiny float. Of its nearly 500 million outstanding shares, only about 30 million are available to be traded. That equates to roughly 6 per cent of shares, compared to Apple – which has about 98 per cent available – and Tesla's 87 per cent.
Insiders own the remaining Regencell shares, with chief executive officer Yat-Gai Au's ownership accounting for 86 per cent, according to holding data compiled by Bloomberg. BLOOMBERG
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
2 hours ago
- Straits Times
Japanese restaurants, food companies switching to noodles from rice
Rice prices have doubled from 2024 and remain around a spike initially triggered by a poor harvest. PHOTO: AFP As cost-sensitive consumers are steering clear of rice after a price surge to record highs, restaurant chains and food companies are turning to noodles. Antworks Co, operator of Densetsu no Sutadonya eateries offering pork rice bowls, opened its first ramen noodle restaurant in Tokyo in May and plans another three by next February to diversify its operations. 'We have touted our (pork bowl) business as a large portion of our business portfolio, but rice prices are now more than three times higher than those several years ago,' a spokesperson at the Tokyo-based restaurant chain operator said. A pork rice bowl set meal with miso soup and raw egg is now priced at 890 yen (S$7.80), compared with 630 yen in 2021. The spokesperson said consumers would likely stay away if the price were raised to over 1,000 yen. 'The outlook for our business would be more severe if we were just focusing on (pork) bowls,' the official said, adding that the cost of a ramen noodle dish is 100 yen to 150 yen cheaper than a pork bowl. Yoshinoya Holdings Co, the parent of major beef bowl restaurant operator Yoshinoya Co, is also strengthening its ramen noodle business, as it views the beef bowl restaurant market in Japan as saturated. Yoshinoya Holdings Executive vice-president Norihiro Ozawa says its ramen noodle business allows the company to 'balance' ingredient costs with offerings aside from rice and meat. According to the Ministry of Agriculture, Forestry and Fisheries, rice prices have doubled from 2024 and remain around a spike initially triggered by a poor harvest. The average price stood at 4,176 yen per 5kg in the week through June 8, despite releases from the government's rice stockpiles. At supermarkets, consumers are looking for alternatives to rice. According to TableMark Co, sales of its frozen udon noodles grew around 10 per cent in value terms in April and May from 2024, while sales of Kikkoman Corp's packaged udon noodle soup and ingredients rose 10 per cent in the three months through May from the same period in 2024. Meiji Holdings C. said sales of its mainstay Meiji Bulgaria Yogurt products have maintained around 10 per cent growth each month since April 2024. KYODO NEWS Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
3 hours ago
- Straits Times
Private home owners may not have to wait till 2027 for change in HDB wait-out period: Chee Hong Tat
The HDB resale price index grew by 1.6 per cent in the first quarter of 2025, down from 2.6 per cent in the fourth quarter of 2024. PHOTO: LIANHE ZAOBAO Private home owners may not have to wait till 2027 for change in HDB wait-out period: Chee Hong Tat SINGAPORE – The wait-out period for private property downgraders looking to buy a resale flat may be relaxed before 2027, with an expected rise in supply of new and resale flats. Speaking at a community event in Toa Payoh on June 21, National Development Minister Chee Hong Tat said the supply of resale flats is expected to rise from 2026, as batches of Build-To-Order (BTO) flats affected by the Covid-19 pandemic hit their five-year minimum occupation period (MOP). Housing Board will also be launching more than 50,000 units from 2025 to 2027. Mr Chee said he expects that the effect of a strong continued supply of new BTO flats and resale units would moderate resale prices, making it timely for authorities to consider if the 15-month cooling measure should be partially or entirely removed. He added that private property owners may not need to wait till 2027 or 2028 for a review of the wait-out requirement, which was introduced in September 2022. 'So that's why I said (this would be considered) at the right time, when the resale market has stabilised, and when the supply of resale flats increase, which we think will happen in the next few years, because this year is actually the year where the turn will happen,' he said. The HDB resale price index grew by 1.6 per cent in the first quarter of 2025, down from 2.6 per cent in the fourth quarter of 2024. It is the lowest growth in the past five quarters. Asked if the Government is looking at a specific threshold, Mr Chee said: 'I don't think we have a threshold in mind, because this is really a judgment call.' Speaking to reporters on the sidelines of the PA Family PLAYGround event held at Toa Payoh West Community Club, the minister said there are already early signs of price stabilisation in the HDB resale market. 'We'll continue to monitor. I think if the situation continues to improve, then it will allow us to then make that judgment call of when we can remove, whether partially or entirely, the 15-month requirement,' he added. Between shortening the requirement and removing it, Mr Chee said leans towards scrapping it entirely. 'We haven't come to any decision yet, but my own view is that if the situation allows us to remove it entirely, I think we should consider that,' he said. Mr Chee acknowledged that the 15-month requirement posed some inconvenience for private property owners looking to right-size and buy an HDB resale flat, but he said the cooling measure's objective remains valid. 'We want to make sure that the resale flat prices do not rise too quickly and become unaffordable for buyers, especially first time buyers, who want to go into the resale market,' he said. 'I think that's an important objective that we must safeguard.' New hawker centre in Bishan At the community event, Mr Chee also announced to Bishan-Toa Payoh GRC residents that Bishan will be getting its own hawker centre. The hawker centre is among several plans he had pledged to carry out for the constituency during the general election. The anchor minister for the GRC said then that many residents had pointed out that Bishan lacked a hawker centre. Minister for National Development Chee Hong Tat playing a game at the PA Family PLAYGround 2025's third stop at Toa Payoh West Community Club on June 21. ST PHOTO: CHONG JUN LIANG Mr Chee said that more details will be shared after the Urban Redevelopment Authority unveils the Draft Master Plan 2025 on June 25. But he said the hawker centre may be integrated with the Bishan bus interchange, which is set to become an air-conditioned facility. Mr Chee said the refreshed bus interchange may not be built on its existing site next to Junction 8, but it will be near its current spot where the town centre and Bishan MRT station are located. 'We want it (hawker centre) to be near the key transport nodes to make it more convenient for residents,' he said. The approach is in line with integrated facilities in Pasir Ris and Bidadari, where new hawker centres are built on top of or next to MRT stations or bus interchanges. Mr Chee said it is one of the ways the authorities make full use of Singapore's scarce land resources. 'When we combine these different facilities serving different needs, I think we are able to, on one hand, optimise the use of land, and on the other hand, also bring about greater convenience for residents. 'So it's win, win,' he said. Join ST's WhatsApp Channel and get the latest news and must-reads.
Straits Times
3 hours ago
- Straits Times
Private homeowners may not have to wait till 2027 for change in HDB wait-out period: Chee Hong Tat
The HDB resale price index grew by 1.6 per cent in the first quarter of 2025, down from 2.6 per cent in the fourth quarter of 2024. PHOTO: LIANHE ZAOBAO Private homeowners may not have to wait till 2027 for change in HDB wait-out period: Chee Hong Tat SINGAPORE – The wait-out period for private property downgraders looking to buy a resale flat may be relaxed before 2027, with an expected rise in supply of new and resale flats. Speaking at a community event in Toa Payoh on June 21, National Development Minister Chee Hong Tat said the supply of resale flats is expected to rise from 2026, as batches of Build-To-Order (BTO) flats affected by the Covid-19 pandemic hit their five-year minimum occupation period (MOP). Housing Board will also be launching more than 50,000 units from 2025 to 2027. Mr Chee said he expects that the effect of a strong continued supply of new BTO flats and resale units would moderate resale prices, making it timely for authorities to consider if the 15-month cooling measure should be partially or entirely removed. He added that private property owners may not need to wait till 2027 or 2028 for a review of the wait-out requirement, which was introduced in September 2022. 'So that's why I said (this would be considered) at the right time, when the resale market has stabilised, and when the supply of resale flats increase, which we think will happen in the next few years, because this year is actually the year where the turn will happen,' he said. The HDB resale price index grew by 1.6 per cent in the first quarter of 2025, down from 2.6 per cent in the fourth quarter of 2024. It is the lowest growth in the past five quarters. Asked if the Government is looking at a specific threshold, Mr Chee said: 'I don't think we have a threshold in mind, because this is really a judgment call.' Speaking to reporters on the sidelines of the PA Family PLAYGround event held at Toa Payoh West Community Club, the minister said there are already early signs of price stabilisation in the HDB resale market. 'We'll continue to monitor. I think if the situation continues to improve, then it will allow us to then make that judgment call of when we can remove, whether partially or entirely, the 15-month requirement,' he added. Between shortening the requirement and removing it, Mr Chee said leans towards scrapping it entirely. 'We haven't come to any decision yet, but my own view is that if the situation allows us to remove it entirely, I think we should consider that,' he said. Mr Chee acknowledged that the 15-month requirement posed some inconvenience for private property owners looking to right-size and buy an HDB resale flat, but he said the cooling measure's objective remains valid. 'We want to make sure that the resale flat prices do not rise too quickly and become unaffordable for buyers, especially first time buyers, who want to go into the resale market,' he said. 'I think that's an important objective that we must safeguard.' Join ST's WhatsApp Channel and get the latest news and must-reads.
