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Unbelievable! Stock of herbal medicine company, with zero revenue, rallies whopping 46,000% - what's causing this surprising rise?

Unbelievable! Stock of herbal medicine company, with zero revenue, rallies whopping 46,000% - what's causing this surprising rise?

Time of India4 hours ago

The Hong Kong-based organisation, which began trading on the Nasdaq Capital Market in 2021, has witnessed an inexplicable 460-fold increase in 2025. (AI image)
Imagine a stock rising a whopping 46,000%, when the company makes no revenue! As unbelievable as it sounds, that's the case for a herbal medicine biotech company. The shares of Regencell Bioscience Holdings Limited have jumped by a mind-boggling 46,000% in 2025, despite having no revenue generation since its establishment!
The Hong Kong-based organisation, which began trading on the Nasdaq Capital Market in 2021, has witnessed an inexplicable 460-fold increase in 2025, despite minimal corporate announcements.
According to its latest annual SEC filing, the company remains in its research and development phase, having generated no revenue since its inception.
According to a Bloomberg report, Regencell Bioscience Holdings Limited has transformed from a penny stock in April to achieve a market value of approximately $30 billion. The company's market capitalisation stood at merely $53 million a year ago. The firm reported a net loss of $4.4 million for the fiscal year ending June 2024, which is a 28% reduction compared to the previous period.
The company's board sanctioned a 38-for-1 stock split in early 2025. Following the split's implementation on Monday, the share price rose by 283%, marking its highest single-day increase in nearly a year and triggering multiple trading halts due to volatility.
About Regencell Bioscience Holdings: The Stock That Rose 46,000%
The company has primarily sustained its operations through shareholder loans and IPO proceeds, as per the SEC documentation. The IPO generated gross proceeds of $21.85 million, whilst additional net proceeds of $2.85 million were obtained from over allotment shares and the exercise of 325,000 shares.
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Based in the Cayman Islands, the organisation specialises in developing natural herb-based medicines for treating neurological conditions such as ADHD and autism spectrum disorder, according to its website.
Their product candidates are derived from traditional Chinese medicine (TCM) formulations, which they emphasise contain exclusively natural components without synthetic additives.
"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 stated in an October filing.
In 2022, the organisation expanded into Covid-19 treatments, conducting clinical trials for their experimental comprehensive treatment approach. Regencell reported that their 2022 trial data demonstrated the treatment's effectiveness in alleviating and eliminating Covid symptoms within six days, though these findings await peer review validation.
The significant fluctuations in Regencell shares can be attributed to its limited float, the Bloomberg report said.
Of the company's approximately 500 million outstanding shares, merely 30 million are tradeable, representing about 6% of total shares.
This stands in stark contrast to Apple Inc., with 98% tradeable shares, and Tesla Inc., with 87%. The remaining Regencell shares are held by insiders, with Chief Executive Officer Yat-Gai Au controlling 86%, according to Bloomberg's compiled holding data.
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