Latest news with #RegencellBioscienceHoldings
Business Insider
2 days ago
- Business
- Business Insider
A Chinese herbal-medicine stock with no revenue has surged 60,000% this year. 5 things to know about the company's mysterious spike.
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. 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. 1. The latest leg of the rally was triggered by a stock split 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. 2. Retail traders are intrigued, but cautious 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." 3. There's possible influence from RFK's vaccine skepticism 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. 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. 4. The stock has a tiny float, with most shares owned by the CEO 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. 5. There's been controversy around shares of China- and Hong Kong-based firms 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."
CNBC
3 days ago
- Business
- CNBC
Nasdaq-traded Chinese herb company hits near $30 billion market value after speculative surge
Regencell Bioscience Holdings, an early-stage, Hong Kong-based bioscience company with no revenue, is the latest speculative overseas stock to attract an unusual surge in trading demand. Shares of Regencell, which says it develops traditional Chinese herb treatments to treat childhood attention deficit hyperactivity disorder and autism, more than tripled on Monday — soaring more than 280% by the close. A 38-for-1 split declared on June 2 took effect on Monday. The company's year to date performance is off the charts too, having risen 46,000% in 2025. By Monday's close, Regencell, founded in 2014 and traded on Nasdaq under the ticker 'RGC' since 2021, had a total market capitalization of $29.7 billion, according to S&P Capital IQ. Regencell CEO Yat-Gai Au controls 86.24% of the total number of shares outstanding, according to FactSet data. Regencell is the latest example of a speculative international stock attracting attention during summer trading. In August, 2022, for example, AMTD Digital, a Hong Kong-based fintech company, climbed 126%, briefly giving it a market value greater than Coca-Cola and Bank of America. Regencell's market value is now about equal with Nasdaq-traded Lululemon and tops Super Micro Computer and Fifth Third Bancorp. Earlier this month, Regencell explained the stock split as designed solely "to enhance liquidity in the market for the company's ordinary shares and make the shares more accessible to investors." Stock splits do not change anything fundamentally about a company. Regencell's surge also came amid an increased focus on alternative medicines after Robert F. Kennedy Jr. was sworn in as Secretary of the U.S. Department of Health and Human Services in February. Kennedy, a vaccine skeptic, has taken steps to discourage routine immunizations in the U.S., last week removing all of the members of a panel that advises the Centers for Disease Control and Prevention on vaccines. Regencell's stock often makes huge one-day swings. For example, shares jumped roughly 30% on March 21, before dropping 30% the following trading day. In spite of the wild spike in the stock, little is known about the efficacy and commercialization of the Regencell's treatments for ADHD and Autistic Spectrum Disorders. Regencell's business centers on a proprietary Traditional Chinese Medicine formula (TCM) developed in a partnership with TCM practitioner Sik-Kee Au using his "Sik-Kee Au TCM Brain Theory." Sik-Kee Au is the father of the Regencell chief executive officer Yat-Gai Au, the company said in a 2022 statement. Three liquid-based, orally TCM formulae candidates claim to address mild, moderate and severe conditions and only contain natural ingredients such as so-called "detoxication herbs," blood circulation herbs and digestion herbs. "These TCM formulae form the basis of our TCM product candidates, which we intend to develop and commercialize for the treatment of ADHD and ASD," Regencell's website reads. In its latest annual report filed last October, Regencell said that it had not generated any revenue, nor filed for any regulatory approvals of its TCM formulas. For the fiscal years ended June 2024 and 2023, Regencell incurred total net losses of $4.36 million and $6.06 million, respectively, according to a 20F filing to the SEC. "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," read the filing. Regencell has not responded to a CNBC request for comment. Regencell's latest patient case study, dated Nov. 15, 2023, said 28 patients were given the treatment over a period of three months in a second efficacy trial and showed an improvement in symptoms of ADHD and ASD, according to the company's webpage. In an earlier case, Regencell said in a 2021 news release that it treated a dozen patients with suspected or confirmed Covid-19 cases, using a modified version of Au's modified proprietary cold and flu TCM formula. What was described as an improvement of Covid conditions led Regencell to form a joint venture with Honor Epic Enterprises Limited in Sept. 2021 to conduct further tests and commercialize the company's Covid treatment in ASEAN countries, according to the statement. The stock has attracted little chatter on social media over the past few years. Those comments that have been made suggest both retail trader enthusiasm — and skepticism. One user on the Reddit page "r/Shortsqueeze" wrote on Monday that Regencell is "trading like a meme coin. Bought a little to see what happens and it dropped 50% right after lol." Another user said in a post made three months ago, "I scalp RGC everyday for a bit of profit." The stock jumped 1,360% in May alone. On LinkedIn in May, one investor said he "can't stop laughing," after reading the company description. Another post from a user in the pharmaceutical industry, according to his profile, last week said Regencell has become the "stock to watch" after its spike in May on "no official news or catalysts." Another LinkedIn user last month commented on Regencell, saying, "China based, low volume and no official news, bizarro." On X, one user wrote in a Monday post said, "for #CompleteBullsh__CompanyOfTheYear I nominate regencell."
Sydney Morning Herald
4 days ago
- Business
- Sydney Morning Herald
The company with zero revenue that is worth $31 billion
A biotech stock focused on herbal medicine has surged by more than 64,000 per cent so far this year, although the company has made zero revenue, much less turned a profit. The unbelievable rally has transformed Regencell Bioscience Holdings, a penny stock as recently as April, to one worth more than $US20 billion ($30.7 billion) in market value. A year ago, the company had a market capitalisation of $US53 million. This is despite having a net loss of $US4.4 million for its fiscal year that ended June 2024, a 28 per cent decrease from the previous year. Regencell Bioscience this month said its board approved a 38-for-1 stock split. When the split took effect, 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 released. The Hong Kong-based company, 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. A representative for Regencell didn't immediately respond to a Bloomberg request for comment. Incorporated in the Cayman Islands, the company aims to treat neurological conditions 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'. '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 Age
4 days ago
- Business
- The Age
The company with zero revenue that is worth $31 billion
A biotech stock focused on herbal medicine has surged by more than 64,000 per cent so far this year, although the company has made zero revenue, much less turned a profit. The unbelievable rally has transformed Regencell Bioscience Holdings, a penny stock as recently as April, to one worth more than $US20 billion ($30.7 billion) in market value. A year ago, the company had a market capitalisation of $US53 million. This is despite having a net loss of $US4.4 million for its fiscal year that ended June 2024, a 28 per cent decrease from the previous year. Regencell Bioscience this month said its board approved a 38-for-1 stock split. When the split took effect, 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 released. The Hong Kong-based company, 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. A representative for Regencell didn't immediately respond to a Bloomberg request for comment. Incorporated in the Cayman Islands, the company aims to treat neurological conditions 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'. '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.
Straits Times
4 days ago
- Business
- Straits Times
Nasdaq-listed herbal medicine stock with no sales rallies 64,000%
The unbelievable rally has transformed Regencell Bioscience Holdings, a penny stock as recently as April, to one worth more than US$20 billion (S$25.6 billion) in market value. PHOTO: ST FILE NEW YORK - A Nasdaq-listed stock focused on herbal medicine has spiked by more than 64,000 per cent so far in 2025 and yet, the company itself has made zero revenue – much less turned a profit. The unbelievable rally has transformed Regencell Bioscience Holdings, a penny stock as recently as April, to one worth more than US$20 billion (S$25.6 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 in June the company said its board approved a 38-for-1 stock split. When the split took effect on June 16, shares soared 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 didn't immediately respond to a Bloomberg News request for comment. Incorporated in the Cayman Islands, the firm aims to treat neurological disorders like 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.' '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 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, 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 Join ST's Telegram channel and get the latest breaking news delivered to you.
