HCW Biologics Inc. entered into a $26.25 million development line of credit agreement on April 21, 2023.
Provides funding for buildout of new headquarters and manufacturing facility
Capital requirements now funded into 2025
MIRAMAR, Fla., April 27, 2023 (GLOBE NEWSWIRE) --HCW Biologics Inc. (the “Company” or “HCW Biologics”) (NASDAQ: HCWB), a clinical-stage biopharmaceutical company focused on discovering and developing novel immunotherapies to lengthen healthspan by disrupting the link between inflammation and age-related diseases, entered into a $26.25 million development line of credit agreement on April 21, 2023. This five-year, non-amortizing loan, collateralized with real estate assets, provides project financing for the buildout of the Company’s new headquarters and manufacturing facility. Funds formerly earmarked for this purpose will be redeployed for clinical development, including multiple Phase 2 clinical trials in cancer indications to continue to evaluate HCW9218, the Company’s injectable, bifunctional fusion protein molecule for reduction of senescence; and a Phase 1b clinical study in an autoimmune disease to evaluate HCW9302, the Company’s injectable, IL-2-based fusion compound.
Dr. Hing C. Wong, Founder and CEO of HCW Biologics, described the significance of this transaction by stating, “This financing provides us with a cash runway well into 2025 and the ability to continue to execute our strategy on multiple levels. Establishing our own manufacturing capability to support the Company’s and our commercial partners’ clinical development has been a cornerstone of our strategy since the beginning.” He continued, “With this financing, we now have the necessary funding for the mid-phase clinical development programs of our lead product candidate without going to the equity markets for capital during a time when market conditions are not favorable – especially for biotech.”
Additional details of the development line of credit agreement are filed with the Securities and Exchange Commission on a Current Report on Form 8-K.
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 diseases, diabetes, neurodegenerative diseases, autoimmune diseases, as well as other 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 the TOBI™ (Tissue factOr-Based fusIon) discovery platform. The Company uses its TOBI™ discovery platform to generate designer, novel multi-functional fusion molecules with immunotherapeutic properties. The invention of HCW Biologics’ two lead molecules, HCW9218 and HCW9302, was made via the TOBI™ discovery platform. The Masonic Cancer Center, University of Minnesota, has initiated a Phase 1 clinical trial to evaluate HCW9218 in chemo-refractory/chemo-resistant solid tumors that have progressed after prior chemotherapies (Clinicaltrials.gov: NCT05322408). The Company is also enrolling patients in a Company-sponsored Phase 1b/2 clinical trial to evaluate HCW9218 in chemo-refractory/chemo-resistant advanced pancreatic cancer (Clinicaltrials.gov: NCT05304936). The Company’s lead molecule for its regulatory T cell expansion program, HCW9302, is currently undergoing IND-enabling studies for an autoimmune indication.
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, without limitation, statements regarding the ability of HCW9218 to reduce senescence; the ability of HCW9218 to treat cancer; the Company’s capital requirements and the need for additional financing, including its cash runway extending into 2025; successful completion of negotiations for, and timing of, Phase 2 trials to evaluate HCW9218; certain financing as the best return for investors; the timing of phase 1b studies for HCW9302; and the ability of HCW9302 to treat autoimmune diseases. 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. in the annual report on Form 10-K filed with the United States Securities and Exchange Commission (the “SEC”) on March 28, 2023 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
CFO
HCW Biologics Inc.
rebeccabyam@hcwbiologics.com
