Regencell Shares Retreat After 17.39% Rally as Annual Loss Widens

Hong Kong-based Regencell Bioscience Holdings Limited (Nasdaq: RGC) closed at $9.52 on Thursday, Oct. 15, up $1.41, or 17.39%, from $8.11 a day earlier. The shares ended lower in the next session.

Regencell filed its fiscal 2026 annual report on Oct. 7, covering the year ended June 30. The company reported a net loss of $11.70 million, compared with $3.58 million a year earlier, and no product-sales revenue in either fiscal year.

Its development program centers on Traditional Chinese Medicine formulas for attention-deficit/hyperactivity disorder and autism spectrum disorder. It had not applied for regulatory approval for those products as of the annual report.

The filing also disclosed an ongoing U.S. Department of Justice (DOJ) investigation into trading in Regencell’s ordinary shares. The department sent the company correspondence and a subpoena in July 2025 seeking trading records and communications about its operations, finances and accounting. Regencell said it was cooperating and could not predict the investigation’s outcome. The filing said no related legal or administrative proceedings against the company were pending at the time.

HTL International, LLC, Regencell’s independent auditor, issued an adverse opinion on the company’s internal controls as of June 30, 2026. The filing cited weaknesses involving accounting and SEC-reporting staff, the lack of an internal audit function and insufficient separation of duties. The auditor’s opinion on the financial statements was unqualified.