Mr. Yat-Gai Au, our 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.