STOCK MARKET CHAOS: How Regencell Lost $20 BILLION in JUST ONE WEEK!
Have you ever heard of Regencell? If not, now’s the time to get acquainted with this mysterious company that caused a stock market frenzy worth over $20 billion in just seven days! Yes, you read that right – TWENTY BILLION!
Who is Regencell and why is everyone talking about it?
Regencell is a Hong Kong-based company registered in the Cayman Islands, dealing in traditional Chinese medicine and innovative formulas for treating ADHD and autism. The founder, Au Yatgai, a former Berkeley student and ex-Deutsche Bank employee, was riding high when his company was valued at a staggering $33 billion.
But then the drama began. In just seven days, this tycoon’s fortune plummeted by $10.1 billion, as Regencell’s stock price crashed from $78 to just $20.19. Employees at the company’s headquarters in Causeway Bay say Au only shows up occasionally and refuse to comment further. The company itself has not responded to media inquiries.
Pump and Dump or something worse?
Experts are stunned by the sudden crash and the prior explosive 82% surge in shares. FINRA, the US brokerage regulator, warns about the dangers of small, cheap stocks prone to scams like “pump and dump” schemes – where prices are artificially inflated and then shares are quickly sold off.
The SEC is already considering redefining the status of foreign private issuers, which could limit privileges for firms like Regencell. Is Regencell the next victim of these changes, or is it already entangled in suspicious schemes?
Where are the drugs and where are the losses?
Despite boasting innovative medical formulas, Regencell has recorded multi-year losses – $4.4 million and $6.1 million in recent years. The chief medical officer position is vacant, and employees are not doctors, confusing visitors seeking information on ADHD and dementia treatments.
Instagram and giveaways?
Adding to the mystery, Regencell boasts half a million Instagram followers – huge for a healthcare company in Hong Kong. Their online popularity was boosted by giveaways and free concert tickets, including Taylor Swift shows in Asia. Marketing ploy or a cover-up?
What do experts say?
Professor Erik Gordon from the University of Michigan says biotech startups’ stocks can jump from a few dollars to tens in seconds if important news breaks. But with Regencell – there’s no news. Just mysterious rises and falls.
Conclusion: Stock market or circus?
Regencell exemplifies how the stock market can become a playground for shady games and manipulations. While US regulators watch closely, investors and the public remain baffled and worried. Is this just the beginning of a crash or will more scandals emerge?
Got thoughts on this stock market drama or followed the chaos yourself? Drop a comment below. Who knows, maybe together we’ll uncover what’s really going on behind the scenes!
Sources: Blic, Morning Brew, Straitstimes
