Why is Regencell Bioscience (RGC) going up today?

Regencell Bioscience (RGC) is an early-stage bioscience company that focuses on research, development and commercialization of Traditional Chinese Medicine (TCM) for the treatment of several neurocognitive disorders and degenerations, specifically Attention Deficit Hyperactivity Disorder (ADHD) and Autism Spectrum Disorder (ASD).

The company started in Hong Kong in 2014 and completed its first research study using personalized TCM formula in Hong Kong. The company aims to launch three liquid-based standardized TCM formulae candidates for mild, moderate and severe ADHD and ASD patients in Hong Kong first and subsequently to other markets as we deem appropriate.

Why RGC stock surged over 200%

RGC shares has seen a 230% surge in stock price today, this is why. Days earlier the company has announced the underwriter of its initial offering purchased 325,500 additional ordinary shares of the company at the offering price of $9.50.

Gross proceeds from the Offering, including proceeds from the exercise of the over-allotment option, totaled US$24,937,500, before deducting underwriting discounts and other related expenses. The Company’s ordinary shares began trading on the Nasdaq Capital Market on July 16, 2021 under the ticker symbol “RGC.”

Proceeds from the Offering will be used to fund the second research study, the Company’s TCM formulae and products, staff salaries, facilities rental, renovations and equipment, product and intellectual property registrations, and working capital and other general corporate purposes.