Company: HCWB
Filing Date: 2025-04-07
Form Type: S-1
Source: 0001193125-25-073723
Chunk: 84

Company: HCW Biologics Inc.
Filing Date: 2025-04-07
Form: S-1
Chunk 84
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 before 4:00 pm New York City time on the last trading day of the Valuation Period.

The net proceeds to the Company under the ELOC Purchase Agreement will depend on the frequency and prices at which the Company sells
shares of its Common Stock to Square Gate.

The ELOC Purchase Agreement contains customary representations, warranties and agreements of
the Company and Square Gate, limitations and conditions regarding sales of Common Stock, indemnification rights and other obligations of the parties.

52

Registration Rights

Concurrent with the execution of the ELOC Purchase Agreement, the Company entered into a registration rights agreement with Square Gate (the
“ELOC Registration Rights Agreement”), pursuant to which the Company agreed to file a registration statement covering the issuance and sale of shares issuable under the ELOC Purchase Agreement as may be permitted under applicable rules.
The Company agreed to use its commercially reasonable efforts to cause the registration statement to be filed within 45 days after the execution of the ELOC Purchase Agreement and to have such registration statement declared effective within 90 days
of such execution.

Beneficial Ownership Limitation

At no time may Square Gate hold or be required to take beneficial ownership position that exceeds 4.99% of our Common Stock then outstanding,
unless waived by Square Gate.

No Short Selling

Square Gate may not, directly or indirectly, engage in any “short sale” (as defined in Rule 200 of Regulation SHO of the Exchange
Act) or any hedging transaction that establishes a net short position with respect to Common Stock during the term of the ELOC Purchase Agreement.

53

THE ARMISTICE TRANSACTION

General

On November 18, 2024, we
entered into a securities purchase agreement with Armistice Capital Master Fund Ltd. (“Armistice”), pursuant to which HCWB agreed to offer and sell (i) in a registered direct offering (x) 4,160,000 shares of our Common Stock and (y) pre-funded warrants to purchase up to 2,557,000 shares of Common Stock and (ii) in a concurrent private placement, an unregistered warrant to purchase up to an aggregate of 6,717,000 shares of our
Common Stock (the “Purchase Warrant”). The combined purchase price for each share of Common Stock and accompanying Purchase Warrant to purchase one share of Common Stock was $1.03 per share and the combined purchase price for each Pre-Funded Warrant and accompanying Purchase Warrant to purchase one share of Common Stock was $1.0299. Arm