Shares of Regencell Bioscience Limited (RGC) plunged 26.90% in pre-market trading on Friday, continuing a sharp downward trend that has persisted throughout the week. This latest decline follows significant drops in previous sessions, as investors rapidly reassess the company's valuation in the wake of a recent stock split announcement.

The sell-off appears to be a stark reality check for the Hong Kong-based bioscience company, which had experienced an extraordinary rally earlier this year. Regencell's stock had surged by an astonishing 59,900% year-to-date, a move that raised eyebrows given the company's early-stage status and lack of reported revenue. The recent stock split, intended to enhance liquidity and accessibility, seems to have instead triggered a broader reevaluation of Regencell's market position.

Market analysts suggest that the current correction is a natural pullback after such a meteoric rise, especially considering the absence of fundamental financial performance to support the previous valuation. As investors continue to digest the implications of the stock split and reassess the company's prospects, RGC's stock may face further volatility in the near term. The ongoing price correction reflects growing concerns about the sustainability of Regencell's market capitalization, particularly for a company that has yet to generate any revenue in its pursuit of developing traditional Chinese herb treatments for childhood ADHD and autism.