Regencell Bioscience Holdings, which is developing formulations of traditional Chinese medicine for ADHD and autism, raised $22 million by offering 2.3 million shares at $9.50, within the range of $8.50 to $10.50.
At pricing, the Hong Kong, China-based company commands a market value of $120 million.
Regencell is focused on the researching herb-based traditional Chinese medicine (TCM) for the treatment of neurocognitive disorders and degeneration, specifically Attention Deficit Hyperactivity Disorder (ADHD) and Autism Spectrum Disorder (ASD). The company has three standardized TCM formulae candidates targeting mild, moderate, and severe ADHD and autism. Regencell completed its first research study with seven pediatric patients in 2019, and plans to commence a second research study in the 3Q21. The firm's TCM Practitioner, who is the father of the CEO, claims to have developed his own trademarked TCM brain theory based on 30 years of experience; the company notes that his clinical treatment results are not supported by controlled clinical data or trials. TCM has a different regulatory scheme from pharmaceuticals in China.
Regencell Bioscience had no revenue during the 12 months ended December 31, 2020, and booked a net loss of $0.8 million. The company plans to list on the Nasdaq under the symbol RGC. Maxim Group LLC acted as sole bookrunner on the deal.
