Company: HCWB
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0000950170-25-046724
Chunk: 134

Company: HCW Biologics Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 7
Chunk 134
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 rights to the ex vivo therapy and applications as a reagent in cell-based therapy treatments, including cell-based therapies, such as CAR-T therapies.  The Company considers WY Biotech License provisions for the Opt-In Right to take over the development of HCW11-006 for the Americas markets to be an important feature of the WY Biotech License.  We believe our right to recapture this market is a potentially high value opportunity.  Further, we will be able to base our decision to opt-in on the human-data read-out from a Phase 1 clinical trial, which will mitigate our development risks and provide valuable clinical information about the potential for the indications we will use for Phase 2 clinical studies.  See Part I, “Business —Out-License Programs.”

The Company has identified the Class III TRBC Molecules, Immune Cell Engagers, as the next program for out-licensing.  In light of recent transactions coupled with the challenges of clinical development, we plan to take advantage of industry interest in this breakthrough drug.  The Company continually assesses our portfolio of molecules in order to identify potential business development opportunities.  

Financing

•On February 20, 2024, we sold an aggregate of 1,785,718 shares of our common stock to certain of our officers and directors, at a purchase price of $1.40 per share, for an aggregate purchase price of $2.5 million.

•Through October 31, 2024, the Company issued an aggregate of $6.9 million in Senior Notes, which are secured by the Company’s shares of Wugen common stock which were consideration for the license fee for the Wugen License.  The holders of $6.6 million of the outstanding principal for the Senior Notes have agreed to Principal Terms for the conversion into shares of the Company’s Common Stock at a conversion price of $0.65 per share, warrants to purchase $3.3 million of the Company’s Common  Stock at an exercise price of $0.65 per share, and some of the Company’s shares of Wugen common stock.  The conversion is subject to stockholder approval.  See Part II, Item 9B, “Other Information” for more information on the Special Meeting of the Stockholders.

•On November 18, 2024, the Company entered a $6.9 million securities purchase agreement with an institutional investor, involving a registered direct offering and a concurrent private placement of common stock and warrants. The offering, priced above