Company: HCWB
Filing Date: 2025-02-11
Form Type: PRE 14A
Source: 0001193125-25-024372
Chunk: 18

Company: HCW Biologics Inc.
Filing Date: 2025-02-11
Form: PRE 14A
Chunk 18
---
 common stock by avoiding these internal policies and practices. Increasing visibility of our common stock among a larger pool of potential investors could result in higher trading volumes. We also believe that the Reverse Stock Split may make our common stock a more attractive and cost-effective investment for many investors, which could enhance the liquidity of the common stock for our stockholders. These increases in visibility and liquidity could also help facilitate future financings and give management more flexibility to focus on executing our business strategy, which includes the strategic management of authorized capital for business purposes. In evaluating whether to seek stockholder approval for the Reverse Stock Split, the Board took into consideration negative factors associated with reverse stock splits. These factors include the negative perception of reverse stock splits that investors, analysts and other stock market participants may hold; the fact that the stock prices of some companies that have effected reverse stock splits, including the Company, have subsequently declined, sometimes significantly, following their reverse stock splits; the possible adverse effect on liquidity that a reduced number of outstanding shares could cause; and the costs associated with implementing a reverse stock split. Accordingly, after taking into account the negative factors associated with reverse stock splits and based on the positive factors discussed herein, the Board believes that being able to effect the Reverse Stock Split is in the best interests of the Company and its stockholders. Criteria to be Used for Determining Whether to Implement Reverse Stock Split In determining whether and when to effect the Reverse Stock Split and which Reverse Stock Split ratio to implement, if any, following receipt of stockholder approval of this proposal, the Board may consider factors such as:

| • |     | whether the Panel grants us additional time to regain compliance with the Minimum Bid Price Rule; |

| • |     | the historical trading price and trading volume of the common stock; |

| • |     | the then-prevailing trading price and trading volume of the common stock and the expected impact of the Reverse 
 Stock Split on the trading market for the common stock in the short- and long-term;                             |

| • |     | the continued listing requirements for the common stock on Nasdaq or other applicable exchange and our ability to 
 maintain the listing of our common stock on Nasdaq;                                                               |

| • |     | actual and forecasted results of operations, and the likely effect of these results on the market price of common 
 stock;                                                                                                            |

| • |     | the projected impact of the Reverse Stock Split ratio on trading liquidity in the common stock; |

| • |     | the number of shares of common stock outstanding and the