A Meme Stock Without A Business

A small Hong Kong company with no revenue, recurring losses, and no approved products now carries a market value of around $14 billion.

Regencell Bioscience Holdings $RGC ( ▲ 1.78% ) has become one of the market’s strangest success stories, at least on paper.

Regencell says it is developing traditional Chinese herbal remedies for autism spectrum disorder and ADHD. Despite spending less than $1 million on research last year and employing just 10 people, its shares have surged repeatedly without clear news.

On several days in January, the stock jumped double digits, only to reverse hours later.

The company’s own filings paint a stark picture. In its most recent annual report, Regencell warned of “substantial doubt” about its ability to continue as a going concern, a view echoed by its outside auditor.

It also acknowledged that average drug development costs run into the billions, far beyond its current resources. The Centers for Disease Control and Prevention notes there is no cure for ADHD or ASD.

Regencell is also under scrutiny. In October, the company disclosed it had received a subpoena from the Justice Department related to trading in its shares. Cash has fallen, losses continue, and management expects added costs tied to the investigation.

Yet the stock keeps finding buyers. With its chief executive controlling 89% of shares, the float is thin and volatility extreme. For most investors, the situation is not actionable. Shorting is risky. Owning it is a leap of faith.

Regencell’s rise says less about medicine than about markets. Speculative appetite remains strong, and the fringe is willing to suspend disbelief.