Company: HCWB
Filing Date: 2025-02-21
Form Type: DEF 14A
Source: 0001193125-25-032115
Chunk: 26

Company: HCW Biologics Inc.
Filing Date: 2025-02-21
Form: DEF 14A
Chunk 26
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 trusts,
tax-exempt organizations, U.S. expatriates, persons subject to the alternative minimum tax, persons whose functional currency is not the U.S. dollar, partnerships or other pass-through entities, traders in
securities that elect to mark to market and dealers in securities or currencies, (ii) persons that hold shares of our Common Stock as part of a position in a “straddle” or as part of a “hedging transaction,” “conversion
transaction” or other integrated investment transaction for federal income tax purposes or (iii) persons that do not hold shares of our Common Stock as “capital assets” (generally, property held for investment). This summary does
not address backup withholding and information reporting. This summary does not address U.S. holders who beneficially own shares of our Common Stock through a “foreign financial institution” (as defined in Code Section 1471(d)(4)) or
certain other non-U.S. entities specified in Code Section 1472. This summary does not address tax considerations arising under any state, local or foreign laws, or under federal estate or gift tax laws.

If a partnership (or other entity classified as a partnership for U.S. federal income tax purposes) is the beneficial owner of shares of our Common
Stock, the U.S. federal income tax treatment of a partner in the partnership will generally depend on the status of the partner and the activities of the partnership. Partnerships that hold shares of our Common Stock, and partners in such
partnerships, should consult their own tax advisors regarding the U.S. federal income tax consequences of a Reverse Stock Split.

Each holder should
consult his, her or its own tax advisors concerning the particular U.S. federal tax consequences of a Reverse Stock Split, as well as the consequences arising under the laws of any other taxing jurisdiction, including any foreign, state, or local
income tax consequences.

General Tax Treatment of a Reverse Stock Split

A Reverse Stock Split is intended to qualify as a “reorganization” under Section 368 of the Code that should constitute a
“recapitalization” for U.S. federal income tax purposes. Assuming the Reverse Stock Split qualifies as a reorganization, a U.S. holder generally will not recognize gain or loss upon the exchange of share of our common stock for a lesser
number of shares of common stock, based upon the Reverse Stock Split ratio. A U.S. holder’s aggregate tax basis in the lesser number of shares of our Common Stock ordinary shares received in the Reverse Stock