Regencell Bioscience Holdings Limited Announces Over $5 Million Ordinary Share Purchases by CEO
May 16 2022 - 7:56AM
Business Wire
Regencell Bioscience Holdings Limited (NASDAQ: RGC) (“Regencell”
or the “Company”), an early-stage bioscience company focusing on
the research, development and commercialization of Traditional
Chinese Medicine (“TCM”) for the treatment of neurocognitive
disorders and degenerations, as well as infectious diseases
affecting people’s immune system, announced that Yat-Gai Au, the
Company’s Chairman and CEO, made purchases of ordinary shares in
Regencell (“Ordinary Shares”) totaling $5.03 million.
Based on his Schedule 13D filings with the U.S. Securities and
Exchange Commission (the “SEC”) between July 27, 2021 and May 16,
2022, Mr. Au used an aggregate of $5.03 million of his personal
funds to purchase Ordinary Shares through open market purchases.
According to the latest filing, following the purchases, Mr. Au
owns a total of 10,539,159 Ordinary Shares, representing 81.0% of
total issued and outstanding Ordinary Shares.
Mr. Au commented, “Short and distort
schemes used on our stock are negatively affecting our company.
These schemes hurt our investors and patients, especially children
and their families who are looking for a natural approach to treat
attention hyperactivity disorder (“ADHD”), autism spectrum disorder
(“ASD”) and COVID-19, and have the potential to disrupt our mission
to help our patients. I strongly agree with Elon Musk that
sophisticated hedge funds are using short selling and complex
derivatives to take advantage of small investors. Thus, I will
continue to draw a $1 annual salary and no bonus until the company
reaches a $1 billion market capitalization and reserve share
options for all employees except myself. I put my money where my
mouth is and will continue to use my personal funds to purchase
company shares to demonstrate my commitment to the Company and my
position against short and distort sellers. Based on publicly
available data, the Company believes there is a total cumulative
short volume of over 19 million shares since the Company’s IPO. I
began my share purchases since last year, using my personal funds
in order to further our goal to save and improve lives.”
Additionally, to demonstrate commitment to the Company, all
directors and employees who were previously granted stock options
upon the Company’s IPO have agreed to a further lock-up undertaking
for a period of six months after their stock options become vested.
As their stock options are set to vest on July 16, 2022, their
shares will remain locked up until January 16, 2023.
Mr. Au further said, “I would like to also take this opportunity
to also announce that I am currently spearheading a philanthropic
project in my own capacity to provide grants to over 10,000
children afflicted with ADHD, ASD, COVID-19 and those in severe
financial distress. I started providing grants on April 16, 2022
and have already helped over 150 children.”
The timing, number and value of Ordinary Shares to be further
purchased by Mr. Au, if any, will be determined by Mr. Au in his
discretion and will depend on a variety of factors, including the
market price of the Ordinary Shares, general market and economic
conditions, available funds and applicable legal requirements.
About Regencell Bioscience Holdings Limited
Regencell Bioscience Holdings Limited is an early-stage
bioscience company that focuses on the research, development and
commercialization of TCM for the treatment of neurocognitive
disorders and degenerations, specifically ADHD and ASD, and
infectious diseases affecting people’s immune system such as
COVID-19. Regencell has completed its first research study using
personalized TCM formula for the treatment of ADHD and ASD in Hong
Kong and aims to launch three liquid-based standardized TCM
formulae candidates for mild, moderate and severe ADHD and ASD
patients initially in Hong Kong and subsequently in other markets
as it deems appropriate. The Company has formed a joint venture to
offer COVID-19 related treatments to patients in ASEAN countries,
India, Japan, Australia and New Zealand.
Forward-looking Statements
This press release contains “forward‐looking statements” within
the meaning of applicable laws, including U.S. federal securities
laws. These forward-looking statements may include, but are not
limited to, statements relating to our objectives, plans, and
strategies; statements that contain projections of results of
operations or of financial condition; statements relating to the
research, development, and use of our platform technologies,
technologies, products and product candidates; and all statements
that address activities, events, or developments that we intend,
expect, project, believe, or anticipate will or may occur in the
future. The risks and uncertainties of our company include: our
ability to obtain regulatory approval and ultimately commercialize
our TCM formulae and/or products based on our TCM formulae; the
outcome of our research study free from biases of parents or
caregivers of patients because we relied on the data provided by
them; difficulties enrolling patients in our research studies; any
undesirable side effects caused by the TCM formulae candidates
would could delay or prevent their regulatory approval or hinder
commercialization; whether results of our earlier studies on
personalized TCM formulae can be predictive of future research
study results; failure of the research and development process;
whether any TCM formulae candidates can be developed, manufactured,
sold , marketed and distributed; the ability to successfully
commercialize any future therapeutics; our ability to enhance our
brand recognition; and our ability to obtain and protect our
intellectual property; and any adverse publicity associated with
our TCM formulae candidates, ingredients or network marketing
programs. We have based these forward‐looking statements on
assumptions and assessments made by our management in light of
their experience and their perception of historical trends, current
conditions, expected future developments, and other factors they
believe to be appropriate. The Company has also relied upon and
assumed, without independent verification, the accuracy and
completeness of all information available from public sources and
makes no express or implied warranty as to the accuracy or
completeness of any such information. Even if our results of
operations, financial condition and liquidity, and the development
of the industry in which we operate are consistent with the
forward-looking statements contained in this presentation, they may
not be indicative of results or developments in future periods. For
a discussion of these and other risks and uncertainties, see our
Annual Report on Form 20-F for the year ended June 30, 2021, which
is available on the SEC’s website at www.sec.gov. All information
in this press release is as of the date of the release, and the
Company undertakes no duty to update this information unless
required by law. This caution is made under the safe harbor
provisions of Section 21E of the Private Securities Litigation
Reform Act of 1995.
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version on businesswire.com: https://www.businesswire.com/news/home/20220516005619/en/
Investor Relations James Chung ir@rgcbio.com +852 2155 0823
Regencell Bioscience (NASDAQ:RGC)
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