HCW Biologics Inc. entered into a Securities Purchase Agreement with accredited investors to raise approximately $4.0 million in gross proceeds. The private placement involves the sale of units consisting of common stock (or pre-funded warrants) and common warrants. The company intends to use the net proceeds to advance its clinical and preclinical programs, for general corporate purposes, and to pay off certain debts.
Key Details
- Gross Proceeds: Approximately $4.0 million before deducting placement agent fees and other offering expenses.
- Offering Structure: The company agreed to sell an aggregate of 2,846,975 units at a purchase price of $1.405 per unit. Each unit consists of one share of common stock (or one pre-funded warrant) and one common warrant.
- Warrant Terms: Each common warrant is immediately exercisable for one share of common stock at an exercise price of $1.28 per share and will expire five and one-half years from the issuance date. Pre-funded warrants are exercisable at $0.0001 per share.
- Use of Proceeds: Funds will be used to continue clinical trials for HCW9302, advance IND-enabling studies for its T-Cell Engager (HCW11-018b) and immune checkpoint inhibitor (HCW11-040), for general corporate purposes, and to settle certain debts.