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.
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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