Company: HCWB
Filing Date: 2025-04-07
Form Type: S-1
Source: 0001193125-25-073723
Chunk: 17

Company: HCW Biologics Inc.
Filing Date: 2025-04-07
Form: S-1
Chunk 17
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LOC Transaction,” below.

Although the ELOC Purchase
Agreement provides that we may sell up to $40,000,000 of our Common Stock to Square Gate, depending on the market prices of our Common Stock, we may not be able to nor desire to sell any or all of the shares contemplated by the ELOC Purchase
Agreement. In addition, if the number of shares registered hereby is insufficient to cover all of the shares we elect to sell to Square Gate under the ELOC Purchase Agreement, we will be required to file one or more additional registration
statements to register such additional shares.

The extent to which we rely on Square Gate as a source of funding will depend on several
factors, including the prevailing market price of our Common Stock and the extent to which we are able to secure working capital from other sources. Even if we sell a significant number of shares under the ELOC Purchase Agreement to Square Gate, we
may still need additional capital to fully implement our business, operating and development plans. Should the financing we require to sustain our working capital needs be unavailable or prohibitively expensive when we require it, the consequences
could be a material adverse effect on our business, operating results, financial condition and prospects.

Square Gate will pay less than the then-prevailing market price for our Common Stock, which could cause the price of our Common Stock to decline.

The purchase price
of Common Stock sold to Square Gate under the ELOC Purchase Agreement is derived from the market price of our Common Stock. The shares to be sold to Square Gate pursuant to the ELOC Purchase Agreement will be purchased at a discounted price as
described above. Sales by Square Gate of our Common Stock could cause the price of our Common Stock to decrease. These sales may have a further impact on the price of our Common Stock.

It is not possible to predict the actual number of shares we will sell under the ELOC Purchase Agreement and the Purchase Warrant to the selling stockholders, or the actual gross proceeds resulting from those sales.

Subject to certain limitations in the ELOC Purchase
Agreement and compliance with applicable law, we have the discretion to deliver notices to Square Gate at any time throughout the term of the ELOC Purchase Agreement, and Armistice has the discretion to exercise its right to purchase shares of our
Common Stock under the Purchase Warrant at any time through its expiration. The actual numbers of shares of Common Stock that are sold to the selling stockholders may depend upon a number of factors, including the market price of the Common Stock