Herbal medicine maker Regencell Bioscience skyrockets 46,000% this year on no news

Since the beginning of the year, Regencell Bioscience Holdings, a Hong Kong-based and Nasdaq-listed company that develops traditional Chinese medicine, has soared more than 46,000%, Bloomberg wrote yesterday. Just a year ago, the company was worth about $53 million, while now its market capitalization is approaching $30 billion, even though it has never turned a profit and has zero revenue. 

Regencell is up 46,053% at $60.00 per share year to date, with its market capitalization now almost $30 billion. At the same time, there has been virtually no news from the company so far this year, Bloomberg notes. In addition, for its fiscal-2024 full year, ended June 30, Regencell reported a loss of $4.4 million. 

These dynamics may be attributable to the stock's small float, Bloomberg suggests. Out of almost 500 million outstanding shares, only about 6% are available for trading. For comparison, about 98% of Apple shares are available, and about 87% of Tesla shares.  

Regencell has published just two updates for investors this year. On June 2, it announced a 38-for-1 stock split. The split took effect yesterday, June 16, which marked the other update this year. Afterward, the stock soared 276%, a record one-day gain, according to Bloomberg. In morning trading today, the stock had added about another 50% as of this writing.

In its own words, Regencell aims to be the global leader in the research, development, and commercialization of traditional Chinese medicine for the treatment of neurocognitive disorders and degeneration, specifically ADHD and ASD. So far, the company is in the research and development stage and has not generated any revenue since inception. 

Until now, Regencell has funded operations primarily through shareholder loans and IPO proceeds, the company indicated in its 2024 earnings. The IPO, which took place in 2021, brought it $22.7 million in net proceeds. 

«The likelihood of success of our business plan and growth strategy must be considered in light of the problems, substantial expenses, difficulties, complications, and delays frequently encountered in connection with developing and expanding early-stage businesses and the regulatory and competitive environment in which we operate,» Regencell's 2024 report stated.

No Wall Street analysts cover Regencell and have given it a rating. But in May, personal finance company NerdWallet put the stock on its list of the 21 best-performing small caps for June.