Company: HCWB
Filing Date: 2025-02-21
Form Type: DEF 14A
Source: 0001193125-25-032115
Chunk: 34

Company: HCW Biologics Inc.
Filing Date: 2025-02-21
Form: DEF 14A
Chunk 34
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 in a decline
in the price of our Common Stock or in greater price volatility. The carrying value of the Pledged Collateral is $1.6 million. Wugen is a private company and there is currently no market for its stock. It is uncertain whether or if Wugen will have a
liquidity event that will allow the Pledged Collateral to be sold and proceeds to be distributed. In addition, these shares are subject to certain standard lock-up provisions which will remain in place in the event there is a transaction that
requires such a lock-up period, such as an IPO.

21

Possible Effects if Proposal Three is Not Approved If our stockholders do not approve this proposal and we are not able to issue shares of our Common Stock in connection with the conversion of the Notes, we would be required to make repayments of the Notes in cash and the Pledged Collateral would continue to be held in escrow to secure such repayments. In addition, if our stockholders do not approve this proposal and we are not able to issue shares of our Common Stock to the Noteholders, the Company will not be able to increase its stockholders’ equity by the principal amount of the Notes intended to be converted, which is an important part of the Company’s plan to gain and retain continued compliance with applicable Nasdaq listing rules, including the Minimum Stockholder Equity Rule. Executive Officer and Director Interest Four out of our five directors and certain of our executive officers are also Noteholders and stockholders of the Company, as set forth in the table below.

| Holder                            |     | Title                     |     | Principal |           |     | Share of Principal |        |   |
|:----------------------------------|:----|:--------------------------|:----|:----------|----------:|:----|:-------------------|-------:|:--|
| Dr. Hing C. Wong                  |     | Founder and CEO           |     | $         | 2,405,000 |     |                    |  34.80 | % |
| Rebecca Byam                      |     | CFO                       |     |           |   220,000 |     |                    |   3.20 | % |
| Scott T. Garrett                  |     | Chairman of the Board     |     |           |   140,000 |     |                    |   2.00 | % |
| Gary M. Winer                     |     | Board Member              |     |           |    60,000 |     |                    |