Company: HCWB
Filing Date: 2025-04-22
Form Type: 8-K
Source: 0000950170-25-056843
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Company: HCW Biologics Inc.
Filing Date: 2025-04-22
Form: 8-K
Item: Item 8.01
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Item 8.01 Other Events.

As previously reported, HCW Biologics Inc. (the “ Company”) entered into the “2022 Loan Agreement” with Cogent Bank on August 15, 2022, pursuant to which it received $6.5 million in proceeds to purchase a building that was planned to become the Company’s new headquarters and GMP manufacturing facilities (the “ Property”). The loan is secured by a first priority lien on the building. On January 7, 2023, the Company entered into a Standard Form Agreement Between Owner and Design-Builder (the “ Project Contract”), pursuant to which BE& K Building Group, LLC (“ BE& K”) agreed to design, construct and improve the Property.

On April 21, 2023, the Company entered into a credit agreement (the “ Credit Agreement”) with Prime Capital Ventures, LLC (“ Prime”) to obtain financing for the purpose of construction and renovation of the Property. As previously disclosed by the Company on Form 8-K filed on January 12, 2024, on January 10, 2024, after repeated and extended delays of the closing under the Credit Agreement, the Company exercised its right to terminate the Credit Agreement pursuant to its terms. The termination followed repeated delays in funding and related concerns. On September 27, 2024, the Company filed a claim in the bankruptcy proceedings of Prime in an attempt to get the Company’s ICA deposit returned. There can be no assurance that the Company will be successful in its efforts.

During 2024, certain subcontractors filed mechanic’s liens related to unpaid invoices issued in connection with the Company’s construction and renovation of the Property. On December 16, 2024, BE& K the prime contractor on the project, sent the Company a draft, unfiled lawsuit and requested the parties discuss payment. On January 22, 2025, the Company entered into a forbearance agreement with BE& K to allow the Company until March 31, 2025 to continue efforts to obtain the financing required to complete the construction and renovation of the building. Pursuant to the forbearance agreement, the Company made a payment of $1.0 million in partial satisfaction of amounts owing to BE& K and its subcontractors. The 2022 Loan Agreement contains a provision for a discretionary default in the event that the Company fails to pay sums due in connection with construction of any improvements. Thus, beginning in the third quarter of 2024, the Company