Latest news with #RegencellBioscienceHoldings
CNBC
11 hours 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
13 hours 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
13 hours 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
15 hours 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.
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.
