Company: HCWB
Filing Date: 2025-04-07
Form Type: S-1
Source: 0001193125-25-073723
Chunk: 77

Company: HCW Biologics Inc.
Filing Date: 2025-04-07
Form: S-1
Chunk 77
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 is delisted, trading in our Common Stock would also be subject to the requirements of certain rules promulgated under the Exchange Act. These rules require additional disclosure by broker-dealers in connection with any trades involving a stock defined as a “penny stock” and impose various sales practice requirements on broker-dealers who sell penny stocks to persons other than established customers and accredited investors, generally institutions. These additional requirements may discourage broker-dealers from effecting transactions in securities that are classified as penny stocks, which could severely limit the market price and liquidity of such securities and the ability of purchasers to sell such securities in the secondary market. A penny stock is defined generally as any non-exchangelisted equity security that has a market price of less than $5.00 per share, subject to certain exceptions. The market price of the Company’s shares of Common Stock is likely to be highly volatile, and you may lose some or all of your investment. The market price of Company’s shares of Common Stock is likely to be highly volatile and may be subject to wide fluctuations in response to a variety of factors, including the following:

| • |     | the inability to obtain or maintain the listing of the Company’s shares of Common Stock on Nasdaq; |

| • |     | the inability to recognize the anticipated benefits of the Business Combination, which may be affected by, among 
 other things, competition, HCWB’s ability to grow and manage growth profitably, and retain its key employees;    |

| • |     | changes in applicable laws or regulations; and |

| • |     | risks relating to the uncertainty of HCWB’s projected financial information. |

In addition, the equity markets have experienced extreme price and volume fluctuations that have affected and continue to affect the market prices of equity securities of many companies. These fluctuations have often been unrelated or disproportionate to the operating performance of those companies. Broad market and industry factors, as well as general economic, political, regulatory and market conditions, may negatively affect the market price of the Company’s shares of Common Stock, regardless of the Company’s actual operating performance. Volatility in the Company’s share price could subject the Company to securities class action litigation. In the past, securities class action litigation has often been brought against a company following a decline in the market price of its securities. If the Company faces such litigation, it could result in substantial costs and a diversion of management’s attention and resources, which could harm its business. A “short squeeze” due to a sudden increase in demand for shares of our