HCW Biologics Prices $4M At-The-Market Placement of 2.85M Units
HCW Biologics priced a $4.0 million at-the-market placement of 2,846,975 units at $1.405, comprising one common share at $1.28 (or pre-funded warrant) plus a warrant exercisable at $1.28 for 5.5 years. Net proceeds will fund HCW9302 clinical trials, IND-enabling studies for HCW11-018b and HCW11-040, and debt repayments.
1. Offering Pricing and Structure
HCW Biologics issued 2,846,975 units at $1.405 per unit under Nasdaq at-the-market rules. Each unit includes one common share at $1.28 (or a pre-funded warrant at $1.2799) and one warrant at $0.125, exercisable immediately at $1.28 for five and a half years.
2. Use of Proceeds
Net proceeds are earmarked to advance clinical trials for HCW9302, support IND-enabling studies for the T-Cell Engager HCW11-018b and second-generation checkpoint inhibitor HCW11-040, fund general corporate operations, and settle existing debts.
3. Registration Rights
Simultaneously, the company agreed to file an initial Form S-1 registration statement within 60 days of closing and to use commercially reasonable efforts to have it declared effective within 60 days, enabling resale of shares and warrant shares.
4. Issuance Limits and Closing Conditions
The offering, with E.F. Hutton & Co. as sole placement agent, is expected to close on or about May 21, 2025, subject to customary conditions. No single investor may hold more than 4.99% of outstanding shares post-issuance.