Company: HCWB
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0000950170-25-046724
Chunk: 124

Company: HCW Biologics Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 8
Chunk 124
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’s shares of Common Stock, at the Company’s sole discretion, over the next 36 months (the “Put Shares”), subject to certain conditions precedent and other limitations. Square Gate covenanted not to cause or engage in any short sales or hedging transactions with respect to the shares of the Company’s Common Stock. On February 20, 2025, the Company also entered into a registration rights agreement (the “Registration Rights Agreement”) with Square Gate, pursuant to which the Company agreed to submit to the SEC an initial registration statement on Form S-1 by April 6, 2025 and to use commercially reasonable  efforts to cause the Registration Statement to be declared effective by the SEC.  The Maxim Group LLC acted as the Company’s exclusive Placement Agent in connection with this transaction.  Pursuant to Equity Purchase Agreement, following the expiration of the due diligence period, the Company was obligated to pay Square Gate a commitment fee of $150,000, which was required to be paid in shares of the Company’s common stock, par value $0.0001 per share (“Common Stock”), valued at the closing share price of the Common Stock on The Nasdaq Stock Market on February 19, 2025.  The due diligence period expired on or about March 10, 2025. On March 12, 2025, the Company issued 384,615 shares of Common Stock to Square Gate, and such share will be restricted until such time as the Company has an effective S-1 registration statement to register these shares, as is required by the Registration Rights Agreement. On February 20, 2025, the Company and certain holders of Senior Notes agreed on the Principal Terms for conversion of approximately $6.6 million of the outstanding principal of the Senior Notes into shares of the Company’s Common Stock at an exercise price of $0.65 per share, along with issuance of warrants to purchase shares of the Company’s Common Stock at an exercise price of $0.65 per share up to approximately $3.3 million of such shares,  and the granting of rights to receive proceeds from some of the Company’s shares of Wugen common stock.  Upon conversion, the Senior Notes will be surrendered, including the right to receive their pro rata portion of a $3.4 million fixed bonus if they had been repaid at maturity.  The conversion terms are contingent on stockholder approval and will be subject to a vote at the Special Meeting of the Stockholders scheduled on March 31,