Okay, buckle up because I’m about to tell you the most bonkers stock story of 2025. Picture this: a company that makes exactly zero dollars somehow turned into an $11 billion market cap monster with returns that would make crypto bros weep with envy.
Meet Regencell Bioscience (NASDAQ:RGC), the Hong Kong company that’s basically the financial equivalent of that friend who somehow always lands on their feet despite having no visible means of support.
The Setup: Traditional Medicine Meets Wall Street Chaos
Regencell is working on Traditional Chinese Medicine treatments for ADHD and autism. Noble cause, right? Here’s the kicker though – they’ve been at this since 2021 and haven’t made a single penny in revenue. Not one. Their SEC filing basically reads like a confession: “We have no saleable products and have not generated any revenue from product sales.”
They’ve actually lost $3.58 million and $4.36 million in their last two fiscal years. Most companies would be updating their LinkedIn profiles by now, but not Regencell. They’re out here becoming billionaires.
The Plot Twist: When Math Gets Weird
Here’s where it gets spicy. The founder owns 88.6% of the company, leaving only about 56 million shares floating around for us regular folks to trade. It’s like trying to buy concert tickets when only 10% are available to the public – things get crazy fast.
The stock caught fire thanks to a perfect storm of algorithmic trading bots (probably confused as hell), social media buzz about Chinese medicine, and that classic Wall Street FOMO energy. The price shot up to $595 per share by June.
The 38-for-1 Split That Broke Everything
Then came the pièce de résistance: a 38-for-1 stock split. Suddenly, those $595 shares became $16 shares, and retail investors lost their minds thinking they were getting a “discount.” The stock rocketed to over $70 before reality set in and it crashed back down.
It’s been bouncing between $14-$17 since then, recently hitting $23. That’s still a 17,000% gain for anyone brave (or lucky) enough to ride this roller coaster from the beginning.
The Reality Check
Before you start googling “how to buy Regencell,” know that the Department of Justice is investigating the trading activity around this stock. Because of course they are.
This is one of those stories that perfectly captures how weird markets can get when you mix low float stocks, algorithmic trading, and social media hype. It’s fascinating to watch, but remember – for every person who made bank on this wild ride, there’s probably someone else who bought at $70 and learned a very expensive lesson about momentum investing.
Sometimes the market is efficient. Sometimes it’s a casino where a company with no revenue becomes worth more than most Fortune 500 companies. Welcome to 2025, folks.