Source : THE AGE NEWS
By Angel Adegbesan
Despite having no income or turning a profit, a biotech investment focused on herbal remedies has increased by more than 64, 000 % so far this year.
Regencell Bioscience Holdings, a penny stock as recently as April, has become a company worth more than$ US20 billion ($ 30.7 billion ) in market value as a result of the unbelievable rally. The business had a market capitalization of US$ 53 million a year ago. This is despite the fact that the company lost$ US4.4 million for the fiscal year that ended in June 2024, which is a 28 % decrease over the prior year.
This month, Regencell Bioscience announced that its panel approved a 38-for-1 share cut. Stock increased by as much as 434 percent, which is their biggest one-day increase always, to a report high, triggering more than 10 uncertainty reverses.
With little to no announcement made about the company’s stock, the stock has fallen 640 times since 2025. According to its most recent monthly filing with the US Securities and Exchange Commission, the Hong Kong-based firm, which debuted on the Nasdaq Capital Market in 2021, is still in the growth phase and has not generated any profit since then.
Regencell’s member didn’t reply to a Bloomberg request for comment right away.
According to its website, the Cayman Islands-based organization aims to use standard herb-based medications to treat neurological conditions like autism spectrum disorders and ADHD. The formula used to create its product candidates, which is based on traditional Chinese medicine (TCM),” contains just natural ingredients without any artificial components.”
We have never been profitable, the organization said in an October filing, and we have not generated profit from any TCM equations applicants or applied for any regulatory approvals. We also do not have any distribution capabilities or experience, nor have any patents or pending trademark applications.
The business also entered COVID-19 treatment options, conducting trials in 2022 for a “holistic strategy” with its empirical treatment. Regencell claimed that a 2022 trial’s information demonstrated the drug’s ability to reduce and get rid of COVID-19 signs in six days, even though the results had not yet been peer-reviewed.
According to the SEC filing, the company has so far funded its functions, generally from shareholder loans and the money from its initial public offering. It claimed that its IPO net proceeds totaled$ US21.85 million.
The company’s small float could be one of the causes of the enormous jumps in Regencell shares. Just about 30 million of its almost 500 million excellent stock are available for trading. That leaves roughly 6 percent of shares open, which is a small percentage in comparison to Apple ( roughly 98 % ) and Tesla (87 % ). The remaining Regencell shares are owned by officials, with Yat-Gai Au’s rights finance for 86 percent, according to holding files compiled by Bloomberg.
Bloomberg
