Company: HCWB
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0000950170-25-046724
Chunk: 322

Company: HCW Biologics Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1B
Chunk 322
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 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, 2025.  On February 21, 2025, the Company filed a definitive proxy statement related to matters that will be presented to stockholders for their approval at a Special Meeting of Stockholders (“Special Meeting”) to be held on March 31, 2025.  At the Special Meeting, the Company will submit to its stockholders the following three proposals, each of which is, among other things, part of the Company’s plan to regain compliance with applicable Nasdaq continued listing requirements: (1) approval of one or more reverse splits of the Company’s Common Stock, (2) approval of the full issuance of shares of our Common Stock under an Equity line of Credit, and (3) approval of the issuance of shares of the Company’s Common Stock upon  conversion of approximately $6.6 million of the $6.9 million outstanding principal of the Secured Notes pursuant to the Principal Terms for Conversion Amendment, as defined, and more fully described in Part II, Item 9B – “Other Information – Special Meeting of the Stockholders.”   After reaching an agreement