Latest news with #RGC
Yahoo
a day ago
- Business
- Yahoo
The 46,000% Biotech Rocket: How a No-Revenue Stock Hit $30 Billion
Regencell (NASDAQ:RGC) has pulled off one of the most surreal runs in market memory soaring over 46,000% year-to-date, catapulting from a $53 million microcap to a nearly $30 billion juggernaut. The Hong Kong-based biotech, which listed on Nasdaq in 2021, specializes in traditional Chinese medicine aimed at treating neurological disorders and COVID-19. And yet, it hasn't generated a single dollar in revenue since inception. Earlier this month, the company executed a 38-for-1 stock split a move that sent shares up 283% in one day and triggered more than 10 trading halts. The stock's tiny float and frenzied momentum may be doing more heavy lifting than anything on the balance sheet. Warning! GuruFocus has detected 2 Warning Signs with RGC. Regencell's formula is rooted in herbal compounds "no synthetic ingredients," the company says targeting conditions like ADHD and autism. It also claimed its therapy reduced COVID symptoms in six days during a 2022 trial, though the results haven't been peer-reviewed. The firm itself has acknowledged it hasn't filed for regulatory approval, holds no patents, and has no distribution channels. It ended its last fiscal year with a $4.4 million net loss and continues to fund operations largely through shareholder loans and IPO proceeds. Still, the company's narrative natural medicine meets neurological care has attracted a wave of speculative attention. Like many early-stage biotech firms, Regencell is bleeding cash but it's doing so with a surprisingly thick cushion. As shown in the chart below, the company raised a sizable cash pile from 2022 through 2024, even as its debt levels remained relatively modest. This financial buffer may be buying Regencell time to run trials and fund operations while retail traders do the rest. What's possibly fueling this rocket? Just 6% of Regencell's 500 million shares are available for trading. The rest 86% is held by insiders, mostly CEO Yat-Gai Au. That ultra-low float dynamic can turbocharge even modest demand into massive price moves. For investors, this is either a once-in-a-decade asymmetrical upside or a gravity-defying bubble waiting to reset. With no news, no revenue, and no roadmap from management, the Regencell frenzy raises more questions than answers but for now, the market can't seem to look away. This article first appeared on GuruFocus.
Yahoo
a day ago
- Business
- Yahoo
A Chinese herbal-medicine stock with no revenue has surged 60,000% this year. 5 things to know about the company's mysterious spike.
Regencell Bioscience has soared nearly 60,000% year-to-date despite the company having no revenue. The Chinese herbal medicine company says it has a proprietary formula that can help treat ADHD and autism. There are a handful of factors that can explain the stock's mysterious climb. Shares of a little-known Chinese herbal medicine company have surged this year, with a fresh rally seeing the price quadruple in less than a week. It's been a head-scratching move, since the company is unprofitable, and shares have moved on seemingly no news. Regencell Bioscience Holdings, a Hong Kong-based firm specializing in traditional Chinese medicine, saw its US-listed stock soar 398% over the first two days of the week. But that move pales in comparison to the year-to-date increase, which amounted to roughly 60,000% through Tuesday's close. This embedded content is not available in your region. The company, which offers a proprietary oral formula it says can help treat disorders like ADHD and autism, has not generated any revenue, according to a regulatory filing from October. Over the last two fiscal years, the company said it lost a combined $10.4 million. So, what on earth is going on with this stock? Here's what to know. Regencell, which trades under the ticker "RGC" on the Nasdaq, soared 283% on Monday after its 38-for-1 stock split went into effect. The company originally announced the stock split on June 2. While stock splits don't generate any value for the company — with overall market cap staying unchanged — they are often viewed as a bullish driver, since a lower per-share price can make a stock more appealing to retail investors. Regencell finished Monday with a market cap of $30 billion, which swelled further to $39 billion at Tuesday's close. That made it — at least temporarily — worth more than more well-known companies like Lululemon, Kraft Heinz, and Reddit. The rapid rise of Regencell stock was bound to catch the eye of the retail crowd, but even the enduringly bullish cohort is incredulous about what might be going on. Though Regencell is still less talked about than flagship stocks like Tesla and Apple, users on Reddit were quick to identify the surge this week, with some speculating that Regencell was the market's newest "meme stock." "Regencell is doing some weird stuff again," one user wrote on the subreddit r/shortsqueeze. "I'm trying to decide if I should pull out before a possible crash," another user, who said they were a longtime investor, said on the r/pennystocks subreddit. "I was gambling. Didn't have a clue what this company is," another user wrote on a separate thread on r/shortsqueeze about Regencell this month. "I've been watching it go the last two weeks and keep telling myself that it will crash as soon as I buy back in." Regencell stock was also surging around the time Robert F. Kennedy Jr. continued his anti-vaccine push, with the Health and Human Services Secretary removing all members of the Advisory Committee on Immunization Practices last week, an independent panel that helps shape vaccination policies in the US. Regencell says it has a proprietary Traditional Chinese Medicine formula, a liquid-based oral formula it says can help treat ADHD or Autism Spectrum Disorder. The formula, which is meant to be taken twice a day and aims to treat the "fundamental cause" of neurocognitive disorders, contains "only natural ingredients," the firm says. Its website lists various herbs with qualities that can help with blood circulation, digestion, "detoxication," and other functions. "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 firm said in its October filing. The company only has a small number of shares available to trade, one factor that can explain the large swings in its stock. Out of its 500 million shares, just 30 million are available for public trading. That's a far lower percentage than the average for the more widely traded stocks that populate major indexes. Most of the company is owned by Regencell's CEO, Yat-Gai Au. He owned 86% of the company, or a $426 million stake in the first quarter, according to holdings data. His net worth has surged to as much as $33 billion this week, according to Bloomberg, vaulting him into the ranks of the world's richest people. Regencell's second-largest holder, Digital Mobile Venture, owned 7.6% of the company at the end of the first quarter, or around $37.5 million. RBC, BlackRock, and Morgan Stanley also owned miniscule amounts of the stock. Initial public offerings from Chinese or Hong Kong-based firms have been in the spotlight recently. A report from The Wall Street Journal this week said that more than 20 China-based companies and 17 Hong Kong-based companies that went public on the Nasdaq since 2020 have lost 50% of their value or more in a single trading day over the last two years. In 2022, the Financial Industry Regulatory Authority issued a warning about a "heightened threat of fraud" related to small-cap companies that had recently gone public on US exchanges. Many of the companies associated with fraud had operators based in China or broker-dealers based in Hong Kong, the regulator said. In many cases, the broker-dealers were allocated 90% or more of the public float, Finra said, meaning they held most of the IPO shares. The small remaining float leaves stocks vulnerable to market manipulation, it said, referring to such companies as "ramp-and-dump schemes." 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Business Times
2 days ago
- Business
- Business Times
CEO's wealth hits US$33 billion as unprofitable Chinese medicine firm's stock soars
[NEW YORK] A blistering rally in a tiny, money-losing traditional Chinese medicine company's stock has vaulted its founder's net worth to among the world's largest fortunes. The firm, Hong Kong-based Regencell Bioscience Holding, was for all intents and purposes trading as a microcap stock on the Nasdaq just eight weeks ago. But its shares have since exploded, gaining more than 82,000 per cent since its Feb 13 low. The move has boosted the value of chief executive officer Yat-Gai Au's 86 per cent stake to US$33.3 billion, according to the Bloomberg billionaires Index, making Au's paper wealth greater than rich-list stalwarts such as Phil Knight and Masayoshi Son. The shares closed up 30 per cent to US$78 on Tuesday (Jun 17) in New York trading, after gaining 283 per cent on Monday following a 38-for-1 stock split. Regencell is an improbable vehicle for creating a multibillion-dollar fortune. Largely self-funded by Au, the company sells herbal medicine treatments for ADHD and autism spectrum disorder. The firm is still in the R&D phase and has never turned a profit since going public, losing US$4.4 million in the fiscal year through Jun 30, 2024, according to filings. Its chief medical officer position has been vacant since the last doctor to hold the job resigned in 2022. 'Both entities [Regencell and its associated foundation] are Gai's passion projects, and he will continue to invest his personal funds to defend what he believes in,' according to Au's bio page on the company's website. 'He has literally put his money where his mouth is by investing over USUS$9 million in RGC to demonstrate his personal belief and commitment.' Regencell did not respond to a request for comment. 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 Family business Founded in 2014, Regencell's main line of business is marketing and licensing traditional treatments developed by the founder's father, Sik-Kee Au. The elder Au has a background in electrical engineering and formerly owned a security alarm business in California. In August 2021, he was found guilty of professional misconduct by a practitioners' board in Hong Kong for overprescribing medicine, according to a public order. Regencell has exclusive rights over traditional medicinal formulas developed by Sik-Kee Au trademarked under the name Brain Theory. They consist of liquid-based herbal compounds taken twice daily, aimed at treating neurocognitive disorders. The younger Au started Regencell after he was diagnosed with ADHD as a child and suffered from dyslexia through much of his schooling. Despite those learning difficulties, he attended the Haas School of Business at the University of California-Berkeley and landed a job at Deutsche Bank in the late 1990s, working on more than US$4 billion in deals before founding Regencell. His older brother Yat-Pang is the founder and CEO of Veritas Investments, a property investment company that manages roughly 250 buildings on the US West Coast. In 2019, Bloomberg valued his wealth at more than US$100 million. As a high schooler growing up in Silicon Valley, Yat-Pang made headlines as a symbol of alleged anti-Asian discrimination in college admissions when he was rejected from UC Berkeley despite an excellent academic record, according to a 1987 Los Angeles Times report. He later went on earn an MBA from Harvard Business School in 2000. Boosting stake Yat-Gai Au has spent more than US$12 million buying Regencell shares since it went public in 2021. The company's next-largest backer is Samuel Chen, an investor whose early investments in Zoom Video Communications made him a fortune when the company's stock soared almost 1,500 per cent during the pandemic. Chen owned a stake in Regencell worth more than US$2.9 billion at Tuesday's closing price. Beyond investing in neurological treatments, Regencell has dabbled in other areas, too. In 2021, the company signed a two-year licensing agreement to distribute traditional Chinese medicine treatments for Covid-19 in Asia. It's unclear what prompted Monday's massive stock move, which wasn't preceded by any company news and came immediately after the forward stock split. Regencell's shares are very thinly traded: Only about 6 per cent of its outstanding shares float, which makes the stock price more susceptible to extreme fluctuations. BLOOMBERG
UPI
2 days ago
- Business
- UPI
Investors flock to Chinese herbal medicine stock with no revenues
Regencell Bioscience Holdings' NASDAQ stock price rallied with a 280% increase on Monday and another 25% on Tuesday after a recent 38-for-1 stock split took effect on Thursday. File Photo by Angelina Katsanis/UPI | License Photo June 17 (UPI) -- Shares in Hong Kong-based Regencell Bioscience Holdings nearly quadrupled in value amid a 38-to-1 stock split despite the firm reporting no revenues. The stock split triggered a 280% share price increase on Monday, CNBC reported, and continued a 58,000% increase in its price in 2025, with a closing cost of $78 per share on the NASDAQ trading platform on Tuesday. The stock reached a high of $81.23 during morning trading and slumped slightly to $75.47 during Tuesday's after-hours trading. The stock is rated as a "buy" on the TipRanks website after Regencell officials on June 2 announced the stock split to improve its liquidity and value for shareholders. The stock split gave investors 37 shares for each share held on June 12. The shares began trading on a split-adjusted basis on Monday, according to Seeking Alpha. The firm has no reported revenue but says it is developing a Chinese herbal treatment for childhood attention deficit hyperactivity disorder and autism. The firm was established in 2014 and has been traded on NASDAQ under the RGC symbol since 202. It had a market capitalization of $29.7 billion at the end of trading on Monday. The market capitalization rose another 25% on Tuesday, with a total value of $36 billion. The stock traded for pennies per share last year but now has a greater market value than highly recognized businesses, including Kraft Heinz, Lululemon and eBay, according to CNBC. Part of the increased investor interest is due to Health and Human Services Secretary Robert Kennedy Jr. raising awareness of alternative medicines. Regencell Chief Executive Officer Yat-Gai Au controls more than 86% of the company's outstanding shares, according to FactSet. Little information is available about the potential effectiveness of the company's claims regarding its three traditional Chinese medicine formulas that are supposed to treat mild to severe forms of ADHD and autism with natural herbal medications in liquid form. Company officials in October reported no generated revenue and no regulatory approvals for its three liquid medicines. They reported net losses of $6.06 million in 2023 and $4.36 million in 2024. A Regencell patient case study in late 2023 said 28 patients were treated over three months during a second trial, which showed improvements in ADHD and autism. A dozen patients participated in a 2021 study to treat COVID-19, which indicated improvement in their symptoms.
Yahoo
3 days ago
- Business
- Yahoo
Regencell Bioscience Stock Skyrockets as 38-to-1 Split Takes Effect
Regencell Bioscience Holdings shares took off when a 38-to-1 stock split went into effect. The biotech that does research to treat children's diseases using traditional Chinese medicine announced the forward stock split June 2. Regencell said the split was designed to "enhance liquidity" and "make the shares more accessible to investors."It's been quite a good month for investors in Regencell Bioscience Holdings (RGC). Shares of the Hong Kong-firm that focuses on the use of traditional Chinese medicine to treat Attention Deficit Hyperactivity Disorder (ADHD) and Autism Spectrum Disorder (ASD) in children more than quadrupled on the first day a huge 38-to-1 stock split took effect. The company announced the split June 2, and that the stock would be distributed June 13. Regencell said the move was intended to "enhance liquidity in the market for the Company's ordinary shares and make the shares more accessible to investors." Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
