Company: HCWB
Filing Date: 2025-04-07
Form Type: S-1
Source: 0001193125-25-073723
Chunk: 16

Company: HCW Biologics Inc.
Filing Date: 2025-04-07
Form: S-1
Chunk 16
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ice elects to purchase under the Purchase Warrant. Depending on a variety of factors, including market liquidity of our Common Stock, the issuance and sale of shares under the ELOC Purchase
Agreement and Purchase Warrant may cause the trading price of our Common Stock to decline.

We may ultimately issue and sell to the
selling stockholders all, some or none of the shares of Common Stock available under the ELOC Purchase Agreement and under the Purchase Warrant that we are registering. The selling stockholders may sell all, some or none of our shares that they hold
or come to hold pursuant to sales under the ELOC Purchase Agreement and exercises under the Purchase Warrant. The issuance and sale of shares by us to Square Gate pursuant to the ELOC Purchase Agreement will result in dilution to the interests of
other holders of our Common Stock. The sale of a substantial number of shares of our Common Stock by the selling stockholders in this offering, or anticipation of such sales, could cause the trading price of our Common Stock to decline or make it
more difficult for us to sell equity or equity-related securities in the future at a time and at a price that we might otherwise desire.

The sale of a substantial number of ELOC Shares in the public market could adversely affect the prevailing market price of our shares.

We are registering for resale an aggregate of up to $40,000,000 of ELOC Shares, together with 384,615 Commitment Shares. Sales of a
substantial number of our shares in the public market, or the perception that such sales might occur, could adversely affect the market price of our shares. We cannot predict if and when the selling stockholder may sell such shares in the public
markets. Furthermore, in the future, we may issue additional shares or other equity or debt securities convertible into shares. Any such issuance could result in substantial dilution to our existing stockholders and could cause our share price to
decline.

We may not have access to the full amount available under the ELOC Purchase Agreement.

Under the ELOC Purchase Agreement, we will have the right to direct Square Gate to purchase shares of our Common Stock from time to time by
presenting Square Gate with put notices directing Square Gate to

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purchase amounts of our Common Stock per Put, as limited pursuant to the terms of the ELOC Purchase Agreement, at a per-share price equal to 98% of the lowest VWAPs during the three days
following the put notice date. See the section entitled “The E