Company: HCWB
Filing Date: 2025-02-21
Form Type: DEF 14A
Source: 0001193125-25-032115
Chunk: 18

Company: HCW Biologics Inc.
Filing Date: 2025-02-21
Form: DEF 14A
Chunk 18
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 significantly, following their reverse stock splits; the possible adverse effect on liquidity that a reduced number of outstanding shares could cause; and the costs associated with implementing a reverse stock split. Accordingly, after taking into account the negative factors associated with reverse stock splits and based on the positive factors discussed herein, the Board believes that being able to effect one or more Reverse Stocks Split is in the best interests of the Company and its stockholders. 10

Criteria to be Used for Determining Whether to Implement Reverse Stock Split In determining whether and when to effect a Reverse Stock Split and which Reverse Stock Split ratio to implement, if any, following receipt of stockholder approval of this proposal, the Board may consider factors such as:

| • |     | whether the Panel grants us additional time to regain compliance with the Minimum Bid Price Rule; |

| • |     | the historical trading price and trading volume of our Common Stock; |

| • |     | the then-prevailing trading price and trading volume of our Common Stock and the expected impact of a Reverse 
 Stock Split on the trading market for our Common Stock in the short- and long-term;                           |

| • |     | the continued listing requirements for our Common Stock on Nasdaq or other applicable exchange and our ability to 
 maintain the listing of our Common Stock on Nasdaq;                                                               |

| • |     | actual and forecasted results of operations, and the likely effect of these results on the market price of our 
 Common Stock;                                                                                                  |

| • |     | the projected impact of a Reverse Stock Split ratio on trading liquidity in our Common Stock; |

| • |     | the number of shares of our Common Stock outstanding and the potential devaluation of our market capitalization 
 as a result of a Reverse Stock Split; and                                                                       |

| • |     | prevailing general market, industry and economic conditions. |

Certain Risks and Potential Disadvantages Associated with a Reverse Stock Split We cannot assure you that a Reverse Stock Split will increase the price of our Common Stock. We expect that a Reverse Stock Split will increase the market price of our Common Stock. However, the effect of a Reverse Stock Split on the market price of our Common Stock cannot be predicted with any certainty, and the history of reverse stock splits for other companies of similar size to us is varied, particularly because investors may view a reverse stock split negatively. It is possible that the per share price of our Common Stock after a Reverse Stock Split will not increase in the same proportion as the reduction in the number of outstanding shares of our