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HCW Biologics (NASDAQ: HCWB) has announced a $6.9 million registered direct offering and concurrent private placement priced above market. The company will issue 6,717,000 shares of common stock (or pre-funded warrants) at a combined effective price of $1.03 per share. Additionally, unregistered warrants to purchase up to 6,717,000 shares will be issued with an exercise price of $1.03, exercisable immediately with a five-year expiration. The offering, managed by Maxim Group as sole placement agent, is expected to close around November 20, 2024.
HCW Biologics (NASDAQ: HCWB) ha annunciato un offerta diretta registrata di 6,9 milioni di dollari e un collocamento privato concomitante a un prezzo superiore al mercato. L’azienda emetterà 6.717.000 azioni ordinarie (o warrant prefinanziati) a un prezzo effettivo combinato di 1,03 dollari per azione. Inoltre, saranno emessi warrant non registrati per acquistare fino a 6.717.000 azioni con un prezzo di esercizio di 1,03 dollari, esercitabili immediatamente con una scadenza di cinque anni. L’offerta, gestita da Maxim Group in qualità di unico agente di collocamento, è prevista per la chiusura intorno al 20 novembre 2024.
HCW Biologics (NASDAQ: HCWB) ha anunciado una oferta directa registrada de 6,9 millones de dólares y un colocamiento privado concurrente a un precio superior al del mercado. La empresa emitirá 6.717.000 acciones ordinarias (o warrants prefinanciados) a un precio efectivo combinado de 1,03 dólares por acción. Además, se emitirán warrants no registrados para comprar hasta 6.717.000 acciones con un precio de ejercicio de 1,03 dólares, ejercitables de inmediato con una expiración de cinco años. Se espera que la oferta, gestionada por Maxim Group como agente de colocación exclusivo, cierre alrededor del 20 de noviembre de 2024.
HCW Biologics (NASDAQ: HCWB)는 690만 달러의 등록된 직접 공모 및 동시 사모 투자 유치 소식을 발표했습니다. 이 회사는 6,717,000주의 보통주(또는 선불 워런트)를 주당 1.03달러의 유효 가격으로 발행할 예정입니다. 추가로, 6,717,000주를 구매할 수 있는 등록되지 않은 워런트가 주당 1.03달러의 행사 가격으로 발행되며, 즉시 행사 가능하고 5년의 유효기간을 갖습니다. 이번 공모는 Maxim Group이 단독 배치 대행사로 관리하며, 2024년 11월 20일경에 마감될 것으로 예상됩니다.
HCW Biologics (NASDAQ: HCWB) a annoncé une offre directe enregistrée de 6,9 millions de dollars et un placement privé concomitant à un prix supérieur au marché. La société émettra 6.717.000 actions ordinaires (ou bons de souscription préfinancés) à un prix effectif combiné de 1,03 dollar par action. De plus, des bons de souscription non enregistrés pour acheter jusqu’à 6.717.000 actions seront émis avec un prix d’exercice de 1,03 dollar, exerçables immédiatement avec une expiration de cinq ans. L’offre, gérée par Maxim Group en tant qu’agent de placement exclusif, devrait se clôturer autour du 20 novembre 2024.
HCW Biologics (NASDAQ: HCWB) hat ein registriertes Direktangebot über 6,9 Millionen Dollar und eine gleichzeitige Privatplatzierung zu einem Preis oberhalb des Marktes angekündigt. Das Unternehmen wird 6.717.000 Stammaktien (oder vorab finanzierte Warrants) zu einem kombinierten effektiven Preis von 1,03 Dollar pro Aktie ausgeben. Darüber hinaus werden nicht registrierte Warrants zum Kauf von bis zu 6.717.000 Aktien mit einem Ausübungspreis von 1,03 Dollar ausgegeben, die sofort ausgeübt werden können und eine Laufzeit von fünf Jahren haben. Das Angebot, das von Maxim Group als alleiniger Platzierungsagent verwaltet wird, wird voraussichtlich um den 20. November 2024 abgeschlossen.
Positive
- Offering priced above market under Nasdaq rules
- Secured $6.9 million in gross proceeds to strengthen financial position
- Five-year warrant duration provides long-term funding flexibility
Negative
- Potential dilution of existing shareholders through issuance of 6.7M new shares
- Additional dilution possible if warrants are exercised
- Offering-related expenses will reduce net proceeds
Insights
This registered direct offering represents a significant dilutive event for HCWB, with the issuance of 6.7 million shares and accompanying warrants priced at $1.03 per share. The pricing structure, while above market under Nasdaq rules and the $6.9 million gross proceeds indicate a strategic capital raise to support the company’s clinical-stage operations. The concurrent private placement of warrants, exercisable immediately at $1.03, creates potential for additional dilution over the next five years if exercised. This financing strengthens the balance sheet but comes at the cost of significant shareholder dilution, representing a substantial portion of the company’s $53.7 million market cap. The single institutional investor participation suggests some institutional confidence in HCWB’s immunotherapy pipeline, though the warrant structure indicates a hedged position.
MIRAMAR, Fla., Nov. 18, 2024 (GLOBE NEWSWIRE) — HCW Biologics Inc. (“HCWB” or “HCW Biologics”), (NASDAQ: HCWB), a U.S.-based clinical-stage biopharmaceutical company focused on discovering and developing novel immunotherapies to lengthen healthspan by disrupting the link between inflammation and age-related diseases, today announced that it has entered into a securities purchase agreement with a single institutional investor to purchase 6,717,000 shares of common stock (or pre-funded warrants in lieu thereof) in a registered direct offering priced above market under Nasdaq rules. In a concurrent private placement, the Company also agreed to issue unregistered warrants to purchase up to an aggregate of 6,717,000 shares of common stock. The combined effective offering price for each share of common stock (or pre-funded warrant in lieu thereof) and accompanying warrants is $1.03. The warrants will have an exercise price of $1.03 per share, will be exercisable immediately, and expire on the five year anniversary from the date of issuance.
The gross proceeds to the Company from the registered direct offering and concurrent private placement are estimated to be approximately $6.9 million before deducting the placement agent’s fees and other offering expenses payable by the Company. The offering is expected to close on or about November 20, 2024, subject to the satisfaction of customary closing conditions.
Maxim Group LLC is acting as the sole placement agent in connection with the offering.
The shares of common stock (or pre-funded warrants in lieu thereof) are being offered pursuant to a shelf registration statement on Form S-3 (File No. 333-266991), which was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on August 26, 2022. The offering of shares of common stock (or pre-funded warrants in lieu thereof) will be made only by means of a prospectus supplement that forms a part of such registration statement. The warrants to be issued in the concurrent private placement and the shares issuable upon exercise of such warrants were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Act”), and Regulation D promulgated thereunder and have not been registered under the Act or applicable state securities laws.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sales of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. A prospectus supplement relating to the shares of common stock and pre-funded warrants will be filed by the Company with the SEC. When available, copies of the prospectus supplement relating to the registered direct offering, together with the accompanying prospectus, can be obtained at the SEC’s website at www.sec.gov or from Maxim Group LLC, 300 Park Avenue, New York, NY 10022, Attention: Syndicate Department, or via email at syndicate@maximgrp.com or telephone at (212) 895-3500.
About HCW Biologics:
HCW Biologics is a clinical-stage biopharmaceutical company focused on discovering and developing novel immunotherapies to lengthen healthspan by disrupting the link between chronic, low-grade inflammation, and age-related diseases, such as cancer, cardiovascular, diabetes, neurodegenerative, and autoimmune diseases, as well as other inflammatory conditions such as long-haul COVID-19. The Company has combined a deep understanding of disease-related immunology with its expertise in advanced protein engineering to develop two drug discovery platforms, each with a novel backbone which is used to generate designer, novel multi-functional fusion molecules with immunotherapeutic properties. The Company’s legacy drug discovery platform is its TOBI™ (Tissue factOr-Based fusIon) discovery platform, which has a Tissue-Factor based backbone. It was used to create HCW Biologics’ molecules: HCW9218, HCW9302, HCW9206 and HCW9201. The Company’s second drug discovery platform uses a unique protein-based backbone differentiated from Tissue Factor. Immunotherapeutics created with the Company’s two distinct drug discovery platforms have different characteristics and mechanisms of action, expanding the various pathways for treating senescence-associated disorders. The University of Pittsburgh Medical Center (UPMC) has agreed to include HCW9218 in an Investigator-sponsored Phase 2 clinical trial to evaluate patients with metastatic, advanced stage ovarian cancer in combination with neoadjuvant chemotherapy (NCT05145569).
Forward-Looking Statements
Statements in this press release contain “forward-looking statements” that are subject to substantial risks and uncertainties. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements contained in this press release may be identified by the use of words such as “anticipate,” “expect,” “believe,” “will,” “may,” “should,” “estimate,” “project,” “outlook,” “forecast” or other similar words and include, the statements on the closing of the offering and the satisfaction of closing conditions and use of proceeds in the offering, the Company’s ability to develop new immunotherapeutic treatments for non-oncology or oncology indications; the capabilities of the Company’s new platform and the effectiveness of new fusion proteins developed using the new platform. Forward-looking statements are based on the Company’s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. Factors that could cause actual results to differ include, but are not limited to, the risks and uncertainties that are described in the section titled “Risk Factors” in the annual report on Form 10-K/A filed with the United States Securities and Exchange Commission (the “SEC”) on May 15, 2024, the latest Form 10-Q filed with the SEC on November 14, 2024, and in other filings filed from time to time with the SEC. Forward-looking statements contained in this press release are made as of this date, and the Company undertakes no duty to update such information except as required under applicable law.
Company Contact:
Rebecca Byam
Chief Financial Officer
HCW Biologics Inc.
RebeccaByam@hcwbiologics.com
FAQ
What is the size of HCW Biologics (HCWB) November 2024 offering?
HCW Biologics announced a $6.9 million registered direct offering and concurrent private placement, consisting of 6,717,000 shares or pre-funded warrants priced at $1.03 per share.
What is the exercise price and expiration of HCWB’s November 2024 warrants?
The warrants have an exercise price of $1.03 per share, are exercisable immediately, and expire five years from the date of issuance.
When is HCWB’s November 2024 offering expected to close?
The offering is expected to close on or about November 20, 2024, subject to customary closing conditions.
Who is the placement agent for HCWB’s November 2024 offering?
Maxim Group is acting as the sole placement agent for the offering.
