The entire OTC Market is talking about just one stock this week and that’s Regen BioPharma (OTCMKTS: RGBP). The stock rocketed 957% in just two days after signing a deal with Oncology Pharma (OTCMKTS: ONPH) for the treatment of pancreatic and colon cancer.
Its preferred shares also took off.
We really like this move in Regen BioPharma because this could be the spark that gets investors excited about OTC stocks again. Last year, it was Tesoro Enterprises and its merger with HUMBL Inc (OTCMKTS: HMBL) that set the OTC Markets on fire as it became the biggest runner of 2020.
What we like about Regen BioPharma is that it is at the same price where we recommended HMBL to our readers and subscribers, which you can read here. HMBL would go on to run to almost $8 from just $.027 a share.
We think RGBP has just as much potential. In this article, we take a look at the recent 8-Ks from Regen BioPharma and why we believe RGBP stock can keep running.
First up, here’s a little background info for those not familiar with the company. Regen BioPharma is a publicly-traded biotechnology company focused on the immunology and immunotherapy space.
The Company plans to rapidly advance novel technologies through pre-clinical and Phase I/ II clinical trials. Currently, the Company is advancing small molecule therapies for treating cancer and autoimmune disorders by modulating the Checkpoint NR2F6.
The company also developing products treating blood disorders using small molecules and gene silencing (DiffronC), treating cancer with cellular immunotherapy (dCellVax), modulating key molecular processes in cancer stem cell through its patented molecular targeting approaches (BORIS), and repairing damaged bone marrow in patients with aplastic anemia and chemotherapy/radiotherapy treated cancer patients (HemaXellerate).
Messenger RNA – known as mRNA
Regen BioPharma signed a license agreement with Oncology Pharma for intellectual property pertaining to mRNA (messenger RNA) to be used in developing a therapy for treating pancreatic cancer.
The License IP consists of antigen-specific cancer vaccines in which modified mRNA is administered to produce epitopes able to produce an immune response which augments the likelihood of successful induction of immunity. An epitope is the part of an antigen that is recognized by the immune system.
mRNA is important because it is the foundation of the Moderna and Pfizer COVID-19 vaccines.
Messenger RNA – known as mRNA – are genetic instructions for our cells. mRNA serves as a code to make proteins. Proteins are needed for cellular functions inside our bodies, including growth, energy production, and defense against illnesses.
mRNA technology is a strand of mRNA created in a lab that prompts the recipient’s cells to create protein fragments that are based on the “non-self” DNA characteristics of the vaccine’s target. When recognized, the protein fragments trigger a response from the patient’s immune system.
As with the COVID-19 vaccines, the mRNA instructs the patient’s cells to produce protein fragments based off a tumor’s genetic mutations identified during testing. The immune system then searches for other cells with the mutated proteins and clears out any remaining circulating tumor cells.
Oncology Pharma Deals
Regen BioPharma signed two deals with Oncology Pharma. One is between Oncology and Regen for treating pancreatic cancer. The second is between Regen’s wholly-owned subsidiary KCL Therapeutics, Inc and Oncology for the treatment of colon cancer.
As consideration to Regen for the rights and license granted pursuant to the Agreement Oncology Pharma shall:
(a) pay to Regen a nonrefundable fee of $55,000 no later than April 20,2021
(b) pay to Regen royalties equal to five percent (5%) of the Net Sales as Net Sales are defined in the Agreement of any Licensed Products in a quarter.
(c) 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
As consideration to KCL Therapeutics for the rights and license granted pursuant to the Agreement Oncology Pharma shall:
(a) pay to KCL a nonrefundable fee of Fifty Thousand common shares of Oncology Pharma, Inc. no later than April 20,2021
(b) pay to KCL royalties equal to five percent (5%) of the Net Sales as Net Sales are defined in the Agreement of any Licensed Products in a quarter.
(c) pay to KCL 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 KCL receives payment
The 50,000 shares of Oncology Pharma are currently worth $1,700,000.
The First Of More To Come From Regen BioPharma
What we really like about the deals with Oncology Pharma is that Regen BioPharma is sitting on a very valuable patent portfolio. It was just a matter of time before they started monetizing it. Just doing a Google patent search yields 23 results.
These deals further validate the premise that while there has been no news from the company in almost 2 years, Regen BioPharma and its CEO David Koos have been hard at work for shareholders.
Updating Its Filings
OTC stocks that have the STOP sign due to not filing financials can be monster runners as they work to become current. Regen BioPharma filed an 8-K that they intend to complete their financials. Once the company files for 2019 and 2020, the STOP sign will be removed. This will allow more brokers to list RGBP and RGBPP for their customers to trade. This is why some folks at Fidelity for instance can’t purchase shares.
RGBP vs RGBPP
You can play Regen BioPharma by owning RGBP or RGBPP. The big difference is the share structure.
$RGBP $RGBPP Preferred shares also make a lot of sense for this stock.
1. Institutions are going to load up on Preferred shares, which will increase the share price based on small SS
2. If the price goes too high the company may buy it back from you by paying a premium. Win-win
— Onside (@Onside_trap) April 10, 2021
As we keep saying, there are always opportunities in the markets and it’s our job to find winning OTC stocks. Huge gains can be made in such a short amount of time.
If you like RGBP or RGBPP, our best advice is to be patient and throw bids in below the market. Buying dips and selling rips as swing trades remains the best strategy in these markets.
We believe that the 957% run in RGBP is just what the OTC Markets needed. When investors start hearing about 10-baggers they go where the fast money can be made. We saw that last year with TSNP/HMBL and how that hot stock fueled an OTC boom like we had never seen before in our 30 years of trading. There was a new 1000% runner every week.
This is why it’s important to look for OTC stocks that have yet to run. There are plenty of opportunities out there and we look at hundreds of OTC stocks to buy each week trying to find the best alerts for our subscribers.
Remember, all it takes is one or two to become a winner and you’ve crushed the market indices for the year.
As always, good luck to all (except the shorts)!
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Disclosure: We have no position in any of the securities mentioned. We wrote this article ourselves and it expresses our own opinions. We are not receiving compensation for it. We have no business relationship with any company whose stock is mentioned in this article. Insider Financial is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This article is not a solicitation or recommendation to buy, sell, or hold securities. This article is meant for informational and educational purposes only and does not provide investment advice.