Regencell Bioscience Limited (RGC) saw its shares plummet 5.06% in after-hours trading on Tuesday, following the company's announcement of a 38-for-1 forward stock split. This sharp decline comes amid an extraordinary rally that has seen the stock surge by more than 46,000% year-to-date, despite the company reporting no revenue.

The biotech firm, which specializes in herbal medicine, declared that shareholders will receive 37 additional shares for each share held as of the record date. While stock splits typically don't affect a company's fundamental value, they often lead to price adjustments as the market recalibrates expectations. The announcement seems to have prompted investors to reassess Regencell's lofty valuation, resulting in the after-hours sell-off.

As the market prepares for the stock split to take effect, investors will be closely watching Regencell's performance in the coming days. The company's ability to justify its high valuation with concrete business developments will be crucial in determining its future stock trajectory. This recent plunge highlights the volatility and speculative nature of Regencell's stock, especially given its lack of revenue and the market's reaction to corporate actions such as stock splits.