- The stock price of Regencell Bioscience Holdings Ltd (NASDAQ: RGC) increased by over 40% pre-market. This is why it happened.
The stock price of Regencell Bioscience Holdings Ltd (NASDAQ: RGC) – an early-stage bioscience company that focuses on research, development, and commercialization of Traditional Chinese Medicine (TCM) for the treatment of neurocognitive disorders and degeneration, specifically Attention Deficit Hyperactivity Disorder (ADHD) and Autism Spectrum Disorder (ASD) – increased by over 40% pre-market. This is a continuation of momentum as the company stock price increased 11.35% in the previous trading session.
There is no company-specific news driving the stock price up today. On August 20, the company stock price increased by 204.13%. Investors had responded positively to Regencell Bioscience announcing that the underwriter of its initial public offering (the offering) had exercised its option to buy 325,000 additional ordinary shares at the public offering price of US$9.50 per share to cover over-allotments.
On July 16, 2021, the company’s ordinary shares started trading on the Nasdaq Capital Market. And they raised net proceeds of approximately $19.3 million from the initial public offering of 2.3 million ordinary shares at a public offering price of $9.50 per share. Regencell Bioscience is using the proceeds to fund its second research study, TCM formulae and products, staff salaries, product and intellectual property registrations, facilities rental, renovations, and equipment, for working capital and other general corporate purposes.
Regencell Bioscience’s first study using personalized TCM formula in Hong Kong showed a drop in assessment scores — which means that ADHD and ASD symptoms were less severe for patients who participated in the study. But there is no assurance that the company can expect a similar outcome in the company’s second research study. Encouraged by this positive outcome, Regencell Bioscience plans to commence the second research study next month in Hong Kong, which is expected to last for about one year. About 100 patients will participate in the second research study in 3-12 months treatment cycles. And the goal for the second research study is to verify the effectiveness of the standardized TCM formulae with candidates that are experiencing mild, moderate, and severe ADHD and ASD conditions. Once completed, the research study is going to provide the foundation for the company to apply for a proprietary Chinese medicine (pCm) registration in Hong Kong.
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