Traders Cooperative

[NWriter]

Healthcare Industry for a defensive stance

The market sentiments now is filled with uncertainty and fear, seeing large drops of more than 50% in major large market capital stock prices. (especielly in the tech sector). The negative contributions are non other than the rise in inflationary and Consumer Price Index (CPI) numbers which have recorded to beat analysis estimates, sending market lower to the bearish pits.

Volatile periods calls for a reshuffling of portfolio in many investors and traders where they may opt for defensive sector equities ie. REITs, F&B, Utilities or Healthcare which has shown resilience against market turbulent.

Regencell Bioscience Limited’s (NASDAQ:RGC) a bioscience and healthcare company which focuses heavily on R&D and commercialisation of Traditional Chinese Medicine (”TCM”) treatment specifically Attention Deficit Hyperactivity Disorder (”ADHD”) and Autism Spectrum Disorders (”ASD”), and infectious diseases affecting people’s immune system such as COVID.

A little background on the CEO, its investors and stock-option plan which we know so far,

- Chairman and CEO support

? Since RGC’s incorporation in October 2014 up to the IPO, the Company has been fully funded by its Chairman and CEO, Mr. Yat-Gai Au. (whom is also a practitioner of TCM)

?Upon the IPO, the Chairman’s loan of USD $3.25 million, was converted into ~342,000 common shares at the initial offering price of USD $9.50.

? Pledged to not draw salary and bonus of more than USD $1 until the Company reaches USD $1 billion market capitalization;

? Will not award share options for himself;

? Since the IPO, RGC’s Chairman and CEO has purchased over USD $5 million in common shares on the open market. Most recently, he purchased [49,010 shares](https://www.sec.gov/Archives/edgar/data/0001829667/000121390022026630/ea160018-13da4regen_regen.htm) (~ USD $1.1 million) between April 1 and May 16, 2022, bringing his ownership to 81% of outstanding shares (~10.5 million).

- Billionaire investor backing
Samuel Chen, a successful early Zoom Video Communications (NASDAQ:ZM) investor is one of the major backers of RGC. Last reported 13G filing shows he holds a 7.63% stake in the company.

- Stock option lock-up extended
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.

Having the full support and confidence of the company CEO and its employees, we hope to see further upside and positive news on the company, especially on treatments of ADHD, ASD & Covid19 with the company’s TCM method.

[https://scr.zacks.com/news/news-details/2022/RGC-CEO-Figuratively-Putting-His-Money-Where-His-Mouth-Is/default.aspx](https://scr.zacks.com/news/news-details/2022/RGC-CEO-Figuratively-Putting-His-Money-Where-His-Mouth-Is/default.aspx)