Regencell Bioscience Holdings Ltd RGC

The Ins and Outs of CEO Stock Purchases: A Look at $RGC

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"The Ins and Outs of CEO Stock Purchases: A Look at Regencell Bioscience"

A CEO may buy shares in their own company for a variety of reasons, including seeing the stock as undervalued and wanting to demonstrate confidence in the company's prospects to the market. When a CEO buys shares in their own company, it sends a signal to the market that they believe the stock is undervalued and that the company has a bright future ahead. This can help to boost investor confidence and drive up the stock price.

Another reason for a CEO to buy shares in their own company is to align their interests with those of shareholders. Some companies may require their senior executives to purchase a certain number of shares in the company in order to ensure that they are acting in the best interests of the shareholders. By holding a significant number of shares in the company, a CEO is more likely to make decisions that will benefit the company and its shareholders in the long-term.

In the case of Regencell Bioscience, the company's Chairman and CEO, Mr. Yat-Gai Au, has taken a particularly transparent and shareholder-aligned approach. Since the company's incorporation in October 2014 up to the IPO, the company has been fully funded by Mr. Au. 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. He pledged not to draw salary and bonus of more than USD $1 until the company reaches USD $1 billion market capitalization. He also 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 (~ USD $1.1 million) between April 1 and May 16, 2022, bringing his ownership to 81% of outstanding shares (~10.5 million). This shows his commitment to the company, and it clearly demonstrates that his interests are aligned with those of the shareholders. By investing his own money in the company, he is also signaling to the market that he believes in the company's future and that the stock is undervalued. This can help to boost investor confidence and drive up the stock price. Overall, the CEO buying shares in their own company is a positive signal for investors and can be a sign of a company with a bright future ahead.

https://www.forbes.com/advisor/investing/stock-buyback/#:~:text=A%20stock%20buyback%20is%20when,fund%20operations%20and%20other%20investments

https://www.quora.com/Why-would-a-CEO-buy-shares-in-their-company-when-the-company-stock-is-selling-off/answer/William-Elliott-29?ch=10&oid=336350002&share=85576911&srid=hIzcnI&target_type=answer

https://newsfilter.io/articles/regencell-bioscience-holdings-limited-announces-over-5-million-ordinary-share-purchases-by-ceo-3b36a9b6af854a3aa5240d3148ccbd