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HCW Biologics Inc. (NASDAQ:HCWB), currently trading at $3.56 and down over 77% year-to-date, announced Tuesday that it has received a written notice from the Nasdaq Stock Market LLC stating that the company is not in compliance with Nasdaq Listing Rule 5550(b)(1), also known as the Equity Rule, as of June 30, 2025. According to a press release statement, the notice indicates that the company’s securities are subject to suspension from trading on the Nasdaq Capital Market beginning August 28, 2025, unless the company requests a hearing by August 26, 2025.
The company stated that it intends to request a hearing before the Nasdaq Hearing Panel, which will stay the suspension of trading pending completion of the hearing process. HCW Biologics, which InvestingPro data shows has a concerning current ratio of 0.11 and is quickly burning through cash, noted that it is considering all available options to regain compliance with the Equity Rule.
Previously, on June 26, 2025, HCW Biologics had been notified by Nasdaq that it was in compliance with the Equity Rule and would be subject to a Panel Monitor for one year, through June 23, 2026. Under the terms of the Panel Monitor, if the company does not maintain compliance during this period, it will not be allowed to submit a compliance plan to the Listing Qualifications Staff and must instead request a hearing before the Panel.
The company cautioned that there is no assurance the Panel will grant its request for continued listing or that it will be able to demonstrate compliance within any timeframe that may be set by the Panel.
This information is based on a statement made in a press release and detailed in a filing with the Securities and Exchange Commission. InvestingPro subscribers can access 10 additional key insights about HCWB’s financial health and monitor crucial metrics that could impact its listing status.
In other recent news, HCW Biologics has announced the full exercise of pre-funded warrants by Armistice Capital, allowing the purchase of 513,140 shares of the company’s common stock at an exercise price of $0.0001 per share. This development marks the completion of all pre-funded warrants under a previous Securities Purchase Agreement. Additionally, HCW Biologics has regained compliance with Nasdaq listing requirements, having met the minimum stockholders’ equity requirement as confirmed by Nasdaq. In a strategic move, HCW Biologics has partnered with WY Biotech for the licensing of a novel immunotherapy molecule, HCW11-006, receiving a $7.0 million upfront license fee and becoming eligible for further milestone payments and royalties. The company also retains the option to recapture rights in several regions after Phase 1 clinical trials. Furthermore, HCW Biologics is advancing its research efforts with the development of second-generation, multi-specific T-cell engagers targeting pancreatic cancer. These candidates have shown promising anti-cancer activity in laboratory tests and humanized mouse models. These developments reflect HCW Biologics’ continued efforts in expanding its research and strategic collaborations.
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