HCW Biologics arranges up to $10 million in debt financing

HCW Biologics Inc. (NASDAQ: HCWB) said on November 5, 2026 that it had lined up as much as $10.0 million in debt financing. The company said the funding is meant to cover clinical and operating costs needed to finish its dose-escalating Phase 1 study of HCW9302 as a monotherapy in alopecia areata and to establish a Recommended Phase 2 Dose, which it expects in the first quarter of 2027.¹

The financing closed on November 4, 2026, delivering $3.0 million at closing with access to an additional $7.0 million tied to certain conditions.¹

According to the related 8-K, on November 3, 2026, HCW Biologics entered into a Notes Purchase Agreement with Streeterville Capital, LLC, providing for two secured promissory notes: a Promissory Note A-1 with an original principal amount of $3.2 million and a Promissory Note B with an original principal amount of $7.0 million.¹ The A-1 Note carries a $240,000 original issue discount and $30,000 in lender transaction costs built into its principal, while the B Note carries no OID.¹

At closing, the lender paid $3.0 million, less $30,000 in transaction costs, to the company, and deposited the remaining $7.0 million into an account held by a newly formed, wholly owned subsidiary, HCWB Holdings, LLC, a Utah limited liability company, under a Deposit Account Control Agreement.¹ The company said it intends to use the net proceeds to support its clinical development programs, business development initiatives, and general corporate purposes.¹

The A-1 Note matures 24 months after issuance and accrues interest at 8% per year,¹ while the B Note also matures in 24 months but accrues interest at 5% per year.¹ Maxim Group LLC served as placement agent and will receive a cash fee equal to 7.0% of gross proceeds.¹