Latest news with #Regencell
Yahoo
07-07-2025
- Business
- Yahoo
Regencell Bioscience Stock Volatility Continues Monday
The roller-coaster ride for Regencell Bioscience Holdings shares continued in today's session. The stock price quadrupled when a 38-to-1 stock split went into effect last month, and it skyrocketed 122% last Thursday. Regencell Bioscience Holdings has reported a loss in each of the last three wild ride for shares of Regencell Bioscience Holdings (RGC) continued Monday following the company's unusual stock split last month. The stock—which skyrocketed 122% last Thursday—began today's trading higher, then turned lower, then alternated between gains and losses. Shares recently were down 4%. Regencell, a Hong Kong-based firm that uses traditional Chinese medicine to treat Attention Deficit Hyperactivity Disorder (ADHD) and Autism Spectrum Disorder (ASD), announced the 38-to-1 stock split June 2, and it was distributed to investors on June 13. In the following session, shares quadrupled. They peaked the following day, then plunged to a six-week low last Wednesday before the big jump the following session. Other than the stock split, it's unclear what has been driving the stock price, since in its last financial report filed last October, Regencell noted it had lost money in each of the last three years. Shares of Regencell Bioscience Holdings are up some 17,000% this year. Read the original article on Investopedia
Business Insider
05-07-2025
- Business
- Business Insider
What Triggered the Wild 120% Rally in Regencell Bioscience Stock (RGC)?
Regencell Bioscience (RGC) stunned the market with a jaw-dropping 120% surge in a single trading session on Thursday, despite no major news. The company has a history of wild stock swings fueled by low float, insider control, and retail trading momentum. Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. What Does Regencell Bioscience Do? Regencell focuses on developing traditional Chinese herbal therapies aimed at treating conditions like ADHD and autism. The company has no approved products, no revenue, no patents, and no distribution channels—its herbal treatments remain in the early stages of clinical testing. What's Happening with RGC Stock? RGC stock snapped a 10-day losing streak on Thursday with a 120% gain. The shares have skyrocketed by more than 17,000% year-to-date. On June 16, Regencell's stock surged around 300%, reaching an all-time high following a 38-for-1 stock split. The company said the split aimed to improve market liquidity and make its shares more affordable and accessible to investors. However, it has been trading down by over 70% from its peak in June. The company recently pointed out that short sellers are behind the recent rally and suggested a possible short squeeze. However, experts doubt this claim, pointing to data showing low short interest and modest trading volumes. For context, a short squeeze happens when a stock's price jumps quickly, and traders who had bet against it are forced to buy shares to limit their losses, driving the price up even more. Regencell's Financial Performance Regencell has posted net losses for six straight years. On June 30, 2025, the company shared its unaudited results for the six months ended December 31, 2024. It reported a net loss of $1.85 million, slightly better than the $2.19 million loss in the same period the year before. The update also showed lower operating costs and a small rise in total assets, suggesting a modest improvement in its financial position. Is RGC a Good Stock to Buy? RGC may be a risky bet, but its recent stock split makes it an appealing option for bold investors. The stock split lowered the share price, attracting more retail traders and driving strong buying interest, especially during price dips. With few shares available, any good news like success in a clinical trial could trigger another sharp price jump. While the stock may seem overvalued now, the traditional Chinese medicine (TCM) market is expected to grow significantly in the coming years. If Regencell's therapies prove effective, they could potentially sell at premium prices. On the flip side, even in the best-case scenario, companies in this space face tough regulatory barriers in Western markets, where herbal treatments must meet strict approval standards. With limited clinical evidence to back its claims, Regencell could face a difficult path forward.
Yahoo
30-06-2025
- Business
- Yahoo
Regencell's 82,000% Surge: The $33 Billion Stock Rally That Nobody Can Explain
When Regencell Bioscience (NASDAQ:RGC) surged 82,000%, it wasn't on the back of a blockbuster drug or FDA approval. It was something far stranger. A small, loss-making traditional Chinese medicine firm with a vacant chief medical officer post and no revenue catalyst suddenly became a $33 billion paper giantat least for a few days. At the peak, founder and CEO Yat-Gai Au's stake eclipsed the wealth of Hong Kong's richest tycoons. He wasn't at the office. No press conference. No update. Then came the crash. As of June 26, the stock has fallen 74%, dragging Au's fortune down to $8.6 billion. Warning! GuruFocus has detected 2 Warning Signs with RGC. The company's fundamentals don't justify its viral rise. Regencell markets herbal formulas for ADHD and autism, developed by Au's father, under the trademark Brain Theory. It posted net losses of $4.4 million in fiscal 2024 and $6.1 million in 2023. Yet it managed to outshine every major healthcare brand on Instagramthanks in part to Taylor Swift ticket giveaways. Its second-largest shareholder? A firm tied to Zoom early investor Samuel Chen. Chen, along with his family, also controls Taiwan's Polaris Group and holds a major stake in IC firm Sonix Technology. None of them are talking. And neither is Regencell. Now regulators might start asking the questions retail investors already are. With no news, no insider filings, and no scientific breakthroughs, the stock's behavior has triggered interest from market observers. Both the SEC and Finra have automated tools for flagging anomalies like this, and experts say it's exactly the kind of movement that draws scrutiny. On June 4, the SEC even floated a proposal to tighten rules on foreign private issuerscompanies like Regencell that operate overseas but trade in the U.S. Whether the rally was driven by low float dynamics, social media virality, or something more problematic remains to be seen. But one thing's certain: for investors, this was a $33 billion lesson in how fast the music can stop. This article first appeared on GuruFocus.
Yahoo
27-06-2025
- Business
- Yahoo
Regencell's 82,000% Surge: The $33 Billion Stock Rally That Nobody Can Explain
When Regencell Bioscience (NASDAQ:RGC) surged 82,000%, it wasn't on the back of a blockbuster drug or FDA approval. It was something far stranger. A small, loss-making traditional Chinese medicine firm with a vacant chief medical officer post and no revenue catalyst suddenly became a $33 billion paper giantat least for a few days. At the peak, founder and CEO Yat-Gai Au's stake eclipsed the wealth of Hong Kong's richest tycoons. He wasn't at the office. No press conference. No update. Then came the crash. As of June 26, the stock has fallen 74%, dragging Au's fortune down to $8.6 billion. Warning! GuruFocus has detected 2 Warning Signs with RGC. The company's fundamentals don't justify its viral rise. Regencell markets herbal formulas for ADHD and autism, developed by Au's father, under the trademark Brain Theory. It posted net losses of $4.4 million in fiscal 2024 and $6.1 million in 2023. Yet it managed to outshine every major healthcare brand on Instagramthanks in part to Taylor Swift ticket giveaways. Its second-largest shareholder? A firm tied to Zoom early investor Samuel Chen. Chen, along with his family, also controls Taiwan's Polaris Group and holds a major stake in IC firm Sonix Technology. None of them are talking. And neither is Regencell. Now regulators might start asking the questions retail investors already are. With no news, no insider filings, and no scientific breakthroughs, the stock's behavior has triggered interest from market observers. Both the SEC and Finra have automated tools for flagging anomalies like this, and experts say it's exactly the kind of movement that draws scrutiny. On June 4, the SEC even floated a proposal to tighten rules on foreign private issuerscompanies like Regencell that operate overseas but trade in the U.S. Whether the rally was driven by low float dynamics, social media virality, or something more problematic remains to be seen. But one thing's certain: for investors, this was a $33 billion lesson in how fast the music can stop. This article first appeared on GuruFocus. Sign in to access your portfolio
Business Times
27-06-2025
- Business
- Business Times
Mystery US$33 billion Chinese medicine fortune collapses in days
[HONG KONG] When Yat-Gai Au was worth US$33 billion on paper, he was not in his Hong Kong office. One week later, when his net worth plunged to US$10.1 billion, he was not around either. Officers at the headquarters of Regencell Bioscience Holdings said both times that Au only takes short visits there, before turning away reporters. The firm, a Nasdaq-listed, Cayman Islands-incorporated traditional Chinese medicine company, occupies the whole 9th floor of a tower in Hong Kong's bustling Causeway Bay, including a reception area with a large table-tennis table. Little is still known about the tiny, money-losing company whose shares exploded 82,000 per cent higher and suddenly made Au, its chief executive officer with an 86 per cent stake, richer on paper than some of the city's tycoons like Li Ka-shing. The fleeting nature of its rip-roaring rally has captivated and mystified observers from the US to Hong Hong. Morning Brew, a popular business account on X, flagged its stock move and wondered: 'Is there something I'm missing?' Regulators in the US, which closely monitor wild swings in stock prices, might soon be asking the same question, according to experts. The Financial Industry Regulatory Authority, the watchdog for broker-dealers, has repeatedly warned that small, cheap stocks are more susceptible to fraud. These companies can be targets for pump-and-dump schemes in which fraudsters inflate the stock price and quickly sell their shares. 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 The US Securities and Exchange Commission, meanwhile, has been increasingly wary about companies listed on US exchanges that are based overseas – and Regencell checks both boxes. The regulator on June four called on the public to weigh in on whether the agency needed to amend the definition of what's called a foreign private issuer, potentially limiting the number of companies that qualify for special status that lets them avoid filing quarterly financial reports or disclosing when executives buy or sell company shares. 'This is an example of very unusual movements in share prices,' said Richard Harris, founder and chief executive of Port Shelter Investment Management in Hong Kong. 'These movements could certainly trigger interest by investigators.' The SEC and Finra declined to comment on whether they were monitoring Regencell's moves. Finra's mission is to protect investors and safeguard market integrity, spokesperson Rita De Ramos said. 'In line with that mission, Finra continues to monitor the market for unusual trading activity, as part of our normal course of action.' Regencell did not respond to emails and phone calls for comment on its stock performance and its founder's fortune. The company's shares have retreated 74 per cent from their peak, shrinking Au's stake to about US$8.6 billion as of Jun 26. Founded in 2014, Regencell's main line of business is marketing and licensing traditional treatments for ADHD and autism spectrum disorder developed by the founder's father, Sik-Kee Au. It has exclusive rights over his traditional medicinal formulas, trademarked under the name Brain Theory. The firm posted net losses of US$4.4 million and US$6.1 million, respectively, for the fiscal years ended June 2024 and 2023, according to filings. Its chief medical officer position has been vacant since the last doctor to hold the job resigned in 2022. The younger Au attended the Haas School of Business at the University of California, Berkeley and worked at Deutsche Bank in the late 1990s. He suffered from learning disorders and speech problems, had poor grades and an uncontrollable temper, according to a video post on the company's Instagram account. Regencell's mission is to 'improve and save lives using a natural and holistic TCM formula to treat ADHD and ASD,' according to the same video. The company's official Instagram account has more than half a million followers. BeOne Medicines Ltd., the largest healthcare firm listed in Hong Kong, has just over 2,500. Regencell built out a following with the help of social-media campaigns on the platform that offered free tickets for Taylor Swift concerts in the US and Asia. The company's second-largest shareholder is Digital Mobile Venture, a firm ultimately owned by Taiwan's Samuel Chen and his wife Fiona Chang. Chen was 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, Chang and their children own a 55 per cent stake in Taipei-based Polaris Group, a biotechnology company developing anti-cancer drugs. He's also the biggest shareholder of Sonix Technology, a provider of integrated circuits listed in Taipei. Bloomberg News received no reply to emails sent to Polaris and Sonix seeking comments from Chen. While monitoring for wild price swings used to be done manually, the SEC and Finra now have programmes to automatically detect market anomalies, according to Erik Gordon, professor at the University of Michigan's Ross School of Business. They can also compel companies to share if they know why their stock price soared or crashed or whether insiders cashed in at the peak. The absence of profits or revenues at Regencell isn't an automatic red flag; plenty of early-stage pharmaceutical companies have similar finances, he said. On Jun 18, two men and a woman arrived at Regencell's Hong Kong office seeking information about treatment for ADHD and dementia. They said they read about the stock's surge before arriving. The visitors were also turned away. An employee said its staff were not doctors, and directed them to the company's website. 'Early stage pharma companies can jump from a dollar to four dollars in 90 seconds if there's some news about one of their drugs under development doing well in a clinical trial,' Gordon said. In this case, 'what's interesting is there's no news.' BLOOMBERG
