Hong Kong-based Regencell Bioscience Holdings Limited, which began trading on the Nasdaq Capital Market in 2021, has morphed from a penny hopeful stock in April to achieve a market value of around $30 billion.
Despite generating no revenue since it began and issuing minimal corporate announcements, shares in the herbal medicine biotech firm - which was valued at $53 million a year ago – have skyrocketed by a meteoric 46,000% in 2025.
The company which remains in its research and development phase reported a net loss of $4.4 million for FY24, a 28% reduction compared to the previous period.
Following a 38-for-1 stock split sanction in early 2025 – which was implemented yesterday - the stock’s share price rose by 283%.
While stock splits do not change anything fundamentally about a company, Regencell used the measure to enhance liquidity in the market for the company’s ordinary shares and make the shares more accessible to investors.
Given that this marked the highest single-day increase in nearly a year, multiple trading halts were triggered to temper volatility.
Based in the Cayman Islands, the company has sustained its operations through shareholder loans and IPO proceeds which generated around $21 million.
An additional $2.85 million was obtained from the over allotment of shares and 325,000 shares exercised.
The company specialises in developing natural herb-based medicines for treating neurological conditions such as ADHD and autism spectrum disorder, according to its website.
Containing exclusively natural components without synthetic additives, the products are derived from traditional Chinese medicine (TCM) formulations.
"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.
While little is known about the efficacy and commercialisation of Regencell’s treatments, three liquid-based, orally-taken TCM formula candidates claim to address mild, moderate and severe conditions.
Regencell shares are volatile due to their limited float.
Of the company's approximately 500 million outstanding shares, only 30 million are tradeable, representing about 6% of total shares.
It’s understood that the remaining Regencell shares are held by insiders, with CEO Yat-Gai Au controlling 86%.
Regencell's stock often makes huge one-day swings.
For example, shares jumped around 30% on 21 March, before dropping 30% the following trading day.
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, jumped 126%, briefly giving it a market value greater than Coca-Cola and Bank of America.
