Regencell Bioscience Limited (RGC) shares surged 21.67% in after-hours trading on Monday, continuing the stock's remarkable rally. This latest jump comes as the company's previously announced 38-for-one forward stock split took effect, potentially boosting liquidity and accessibility for investors.

The stock split, which was announced on June 2, means that shareholders of record as of June 12 received 37 additional shares for every share held. Regencell stated that the split was intended to enhance market liquidity for its ordinary shares and make them more accessible to investors. This corporate action follows an already impressive year-to-date gain of over 51,500% for the stock.

However, market observers urge caution as Regencell's meteoric rise appears to be driven largely by speculative trading rather than fundamental developments. The biotech company, which focuses on Traditional Chinese Medicine (TCM) based treatments for ADHD and ASD, currently operates without revenue, clinical progress, or regulatory filings. The extreme volatility in the stock price, including multiple trading halts due to circuit breakers earlier in the day, highlights the risks associated with such speculative movements.