Latest news with #Yat-GaiAu
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.
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Business Standard
a day ago
- Business
- Business Standard
Herbal medicine firm Regencell Bioscience skyrockets 60,000%, stuns market
A Hong Kong-based company with no revenue, no regulatory approvals, and fewer than 15 employees has seen its stock surge nearly 60,000 per cent year-to-date on June 16, 2025. Traditional medicine firm Regencell Bioscience Holdings, listed on the US stock exchange, has rallied sharply in recent days, including a nearly fourfold jump in a week, stunning market watchers and prompting questions over the nature of the gains and what might be driving them. Regencell Bioscience was founded in 2014 and incorporated in the Cayman Islands, though its operations are run through two subsidiaries based in Hong Kong. It went public on the Nasdaq in July 2021, raising approximately $21 million through its initial public offering. Screengrab of Regencell Bioscience stock movement Regencell Bioscience company profile: What we know The company develops liquid-based formulas rooted in traditional Chinese medicine (TCM), which it claims can help manage neurological conditions such as Attention Deficit Hyperactivity Disorder (ADHD) and Autism Spectrum Disorder (ASD). These are proprietary blends made from natural ingredients and are still undergoing internal trials. No regulatory approvals have been secured, and the company has not launched any commercial products. Despite this, the company is now worth more on paper than many established global companies. Regencell reported a combined loss of $10.4 million over the last two financial years and has yet to generate any revenue. The company employs a small team of around 12 people. The company's founder and chief executive officer, Yat-Gai Au, owns approximately 86 per cent of the outstanding shares, effectively controlling the company. Track LIVE Stock Market Updates How a stock split led to a sudden surge The rise in Regencell's share price appears to have been triggered by a 38-for-1 stock split, which came into effect in early June. While such splits do not impact a company's fundamental valuation, they can generate interest by lowering the per-share price. Following the split, Regencell's share price jumped 283 per cent in a single day, briefly pushing its market capitalisation close to $39 billion, higher than companies such as Kraft Heinz and Reddit. The stock rallied despite the absence of new business developments, product announcements, or regulatory progress. Much of the activity appears speculative, with discussion on retail investor forums such as Reddit fuelling interest in Regencell as a so-called 'meme stock'. The situation stands as an example of how low-float stocks can spiral out of control in speculative markets. Why the stock may have risen? Beyond the stock split, several factors may have contributed to Regencell's rise. Only 30 million of the company's 500 million shares are publicly traded. That means even small spikes in demand can move the price dramatically. The tightly held structure, with most shares owned by the founder and a small group of investors, makes the stock susceptible to volatility. There may also be a broader sentiment at play. US interest in natural health may have played a role The surge coincided with renewed debate in the United States around vaccine alternatives and natural health remedies, including comments by public figures questioning conventional immunisation practices. Regencell's positioning as a traditional medicine company, despite making no claims in this space, may have drawn attention from retail traders looking for exposure to alternative healthcare options. What does this soaring valuation mean for Regencell? A market capitalisation of $39 billion for a firm with under 15 employees has raised eyebrows across the financial community. Despite its massive paper valuation, Regencell remains an early-stage company with no commercial revenue and limited operational capacity. Regulatory warnings have already flagged this type of activity. The Financial Industry Regulatory Authority (FINRA) and the US Securities and Exchange Commission have cautioned investors about small-cap foreign stocks with limited free float being vulnerable to manipulation. Alternative medicine market on the rise Globally, interest in traditional and alternative medicine is rising. The complementary and alternative medicine (CAM) market was valued at $178.5 billion in 2024 and is projected to reach $919.5 billion by 2034, growing at a compound annual growth rate of 17.9 per cent, according to Global Market Insights, driven by rising demand for holistic, non-invasive, and natural health solutions. Market research also expects China's TCM industry, valued at $19.5 billion in 2022, to reach nearly $48 billion by 2030. Policy support and public interest in wellness products have driven sustained growth. However, stock surges in the sector have typically followed regulatory decisions or mergers, and have not approached the scale seen in Regencell's case. Ayurveda market grows with demand In India, the Ayurveda and herbal health segment has also expanded rapidly, supported by both government backing and rising consumer demand. The domestic market is projected to grow to ₹36 trillion by 2033 from ₹8.76 trillion in 2024, according to research shared by Imarc Group. Listed companies such as Dabur and Kerala Ayurveda have delivered strong financial performances, driven by product demand and retail penetration. Unlike Regencell, their valuations have been more closely tied to business metrics. As of Wednesday, June 18, the stock had dropped 18 per cent in intraday trading to $63.35 on Nasdaq, but it was still up 48,630.77 per cent year-to-date.
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First Post
2 days ago
- Business
- First Post
Chinese herbal medicine firm with no revenue sends investors in frenzy, shares rise 58,000%
The Hong Kong-based firm sells traditional herbal medicine to treat ADHD and autism spectrum disorder. It is largely self-funded by Au and is still in the research and development phase read more A small-scale Chinese herbal medicine manufacturing company was losing money until recently, when its fortunes turned overnight as its shares rose 58,000 per cent as of Monday. The firm, named Regencell Bioscience Holding Ltd., witnessed a phenomenal revenue growth this week after its shares exploded. The move has increased the value of Chief Executive Officer Yat-Gai Au's 86 per cent stake to $25.6 billion, according to the Bloomberg Billionaires Index, pushing Au's paper wealth above that of longtime rich-list figures like Jerry Jones and Masayoshi Son. STORY CONTINUES BELOW THIS AD About the company The Hong Kong-based firm sells traditional herbal medicine to treat ADHD and autism spectrum disorder. It is largely self-funded by Au and is still in the research and development phase. Regencell Bioscience did not turn a profit since it went public, and in fact lost $4.4 million in the fiscal year through June 30, 2024, as per its filings. The company does not have a chief medical officer since the last person 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,' Au's bio page on the company's website says. 'He has literally put his money where his mouth is by investing over US$9 million in RGC to demonstrate his personal belief and commitment,' it added. Founded in 2014, Regencell primarily focuses on marketing and licensing traditional remedies developed by the founder's father, Sik-Kee Au. A former security alarm business owner in California with a background in electrical engineering, the father was found guilty of professional misconduct in August 2021 by a Hong Kong practitioners' board for overprescribing medication, according to a public order. What's behind the rally? The rally comes amid US interest in alternative medicine and regulatory changes, but analysts warn the surge is unsustainable. Previous speculative bubbles in similar stocks have ended in sharp corrections.
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."
Yahoo
15-03-2025
- Business
- Yahoo
Insiders of Regencell Bioscience Holdings Limited (NASDAQ:RGC) have had a great week after last week's US$111m gain and they haven't stopped buying
Significant insider control over Regencell Bioscience Holdings implies vested interests in company growth Yat-Gai Au owns 81% of the company Insiders have bought recently Every investor in Regencell Bioscience Holdings Limited (NASDAQ:RGC) should be aware of the most powerful shareholder groups. We can see that individual insiders own the lion's share in the company with 81% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company. A quick look at our data suggests that insiders have been buying shares in the company recently and their bets paid off last week after the stock gained 207%. In the chart below, we zoom in on the different ownership groups of Regencell Bioscience Holdings. See our latest analysis for Regencell Bioscience Holdings We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common. There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. Alternatively, there might be something about the company that has kept institutional investors away. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Regencell Bioscience Holdings, for yourself, below. Hedge funds don't have many shares in Regencell Bioscience Holdings. Looking at our data, we can see that the largest shareholder is the CEO Yat-Gai Au with 81% of shares outstanding. This implies that they possess majority interests and have significant control over the company. Investors usually consider it a good sign when the company leadership has such a significant stake, as this is widely perceived to increase the chance that the management will act in the best interests of the company. For context, the second largest shareholder holds about 7.6% of the shares outstanding, followed by an ownership of 0.2% by the third-largest shareholder. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our information suggests that insiders own more than half of Regencell Bioscience Holdings Limited. This gives them effective control of the company. Given it has a market cap of US$183m, that means they have US$149m worth of shares. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling. The general public, who are usually individual investors, hold a 11% stake in Regencell Bioscience Holdings. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. Private equity firms hold a 7.6% stake in Regencell Bioscience Holdings. This suggests they can be influential in key policy decisions. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public. I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For example, we've discovered 3 warning signs for Regencell Bioscience Holdings that you should be aware of before investing here. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
