On November 19, Futu News reported that the biopharmaceutical company$HCW Biologics (HCWB.US)$Today, pre-market once surged more than 40%. As of the time of publication, the stock rose 20.97% pre-market to $1.5, with pre-market volume reaching $2.932 million. Of note, in the previous trading day, HCW Biology's stock price skyrocketed by 320.91%, with a volume of 0.513 billion.
In terms of news, HCW announced yesterday that it has signed a global exclusive licensing agreement with Weiyuan Biotech. The core of this agreement is a candidate product developed by HCW using its advanced drug discovery platform for therapeutic purposes. According to the terms of the agreement, Weiyuan Biotech will pay HCW a $7 million upfront fee, and HCW is eligible to receive additional significant milestone payments and double-digit royalties on future product sales.
On the same day, HCW Biotech announced the signing of a securities purchase agreement with an institutional investor to directly issue 6,717,000 shares of common stock (or equivalent prepaid warrants) at a registered price above the market price according to Nasdaq rules. Meanwhile, the company will also issue unregistered warrants in a private placement, which can purchase up to 6,717,000 shares of common stock. The exercise price of the warrants is set at $1.03 per share, and investors can exercise them immediately, valid for 5 years after issuance. The company expects to raise approximately $6.9 million from this financing activity, although this amount has not yet deducted the arrangement agent fees and other related issuance costs. The entire transaction is expected to be completed around November 20, 2024, provided that normal closing conditions are met. Maxim Group serves as the exclusive placement agent for this issuance.
About the company
HCW Biotech is a clinical-stage biopharmaceutical company focused on discovering and developing novel immune therapies to extend healthy lifespan by disrupting the link between chronic, low-grade inflammation and age-related diseases such as cancer, cardiovascular diseases, diabetes, neurodegenerative diseases, autoimmune diseases, and other inflammatory diseases.
Weiyuan Biotech is a China-based company located in Shanghai that specializes in the early development of recombinant protein drugs and gene or cell therapies.
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It is worth mentioning that industry insiders informed futu news that due to the absence of price limits, small-cap US stocks often experience significant surges and drops, which carries a high risk, so investors need to be cautious.