Little-known penny stock Regen Biopharma(OTCMKTS:RGBP) has soared 800% at the time of writing. That’s not a typo. Investors in RGBP stock have booked an 8-bagger in this stock today as the companyannounceda licensing deal for its pancreatic cancer treatment.
For any stock trading near the “triple zero” range, such moves are possible. This is a relatively microscopic company with a market capitalization of only $10 million right now. Put in perspective, yesterday’s market cap would have been closer to the $1 million mark.
Accordingly, there’s really no telling how high the volatility could be from here. Indeed, today’s move is an indication investors are bullish on this announcement.
So, let’s dive into what was announced and why investors are piling into RGBP stock today.
The Deal That’s Sending RGBP Stock Soaring Today
While the deal was initiallyagreed toyesterday, today, Regenreleasedits official 8-K following the announcement.
Regen has entered into a licensing agreement withOncology Pharma(OTCMKTS:ONPH) whereby ONPH will gain access to Regen’s intellectual property “pertaining to mRNA to be used in developing a therapy for treating pancreatic cancer.” At the time of writing, ONPH stock was up 8% on the news.
According to the 8K:
“As consideration to Regen for the rights and license granted pursuant to the Agreement Licensee shall:
- pay to Regen a nonrefundable fee of $55,000 no later than April 20, 2021;
- pay to Regen royalties equal to 5% of the Net Sales as Net Sales are defined in the Agreement of any Licensed Products in a quarter;
- and pay to Regen ten percent (10%) of all consideration (in the case of in-kind consideration, at fair market value as monetary consideration) received by Licensee from sublicensees, excluding royalties from sublicensees based on Net Sales of any Licensed Products for which Regen receives payment.”
Indeed, this deal sounds beneficial for RGBP shareholders today. As with other speculative penny stocks, chatter onReddithas picked up on RGBP stock.
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