DOJ Investigation and “Going Concern” Warning Amid Another Daily Surge

Financial Data - Regencell Bioscience On December 6, Regencell Bioscience Holdings Ltd (RGC) surged again on the New York Stock Exchange, climbing as much as 20% intraday and closing at $33.41—a 23.56% gain. Trading volume reached 958,948 shares, ranking among the highest turnover rates in small-cap biotech. Market capitalization swelled by roughly KRW 3.6 billion overnight to $11.8 billion (about KRW 1.652 trillion).

Momentum Rally Continues Without New Catalysts

Momentum Stock Remarkably, RGC’s rally shows no clear new disclosures or company announcements. Since its late-October annual report, neither press releases nor clinical-trial updates have appeared on the company website or regulatory filings portal. Yet RGC remains dubbed an *extreme momentum stock*, having delivered a 9,800% return in 2025 alone, and its relative-strength (momentum) indicator ranked at the top among peers last quarter.

Retail Inflow Despite DOJ Probe and Going Concern Warning

This rally endures even after the U.S. Department of Justice launched a probe into RGC’s trading and accounting practices and the company received a “going concern” warning. Announced in mid-December, the DOJ investigation and a management focus on restructuring and cost cuts would normally be viewed as negative catalysts. In RGC’s case, however, they have spurred volatility, fueling a tug-of-war between short sellers and short-term traders.

Zero Revenue, Overvaluation, and the Need for Caution

RGC remains a pre-revenue biotech developer of natural-product treatments for ADHD and ASD, with limited externally verified, large-scale clinical data. Despite this, its market cap rivals those of mid-tier global pharmaceutical and biotech firms. Observers warn that regulatory actions, probe outcomes or additional funding rounds could trigger a sharp reversal. Market participants emphasize that RGC is not on an unbroken ascent but is an extremely volatile stock burdened with fundamental risks, underscoring the need for investor vigilance.