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HCW Biologics Inc. (NASDAQ:HCWB) announced Thursday it has been granted an extension by the Nasdaq Hearings Panel to regain compliance with the exchange’s continued listing requirements. The decision follows a hearing held on September 25, 2025, during which the company presented its plan to address non-compliance with Nasdaq Listing Rule 5550(b)(1), known as the Equity Rule.
According to a statement based on a press release, HCW Biologics had previously received notice from the Nasdaq Listing Qualifications Staff on August 19, 2025, indicating that, as of June 30, 2025, the company was not in compliance with the Equity Rule for continued listing on the Nasdaq Capital Market. InvestingPro analysis reveals concerning liquidity metrics, with a current ratio of 0.11 and short-term obligations exceeding liquid assets, highlighting the company’s financial challenges. Get access to 5 more key ProTips and comprehensive financial metrics with InvestingPro.
The Panel’s decision, issued on October 13, 2025, allows HCW Biologics to continue its listing on the exchange, provided it demonstrates compliance with the Equity Rule by December 31, 2025. The company must also meet all other continued listing rules of the exchange by February 16, 2026, which the Panel stated is the maximum extension permitted while the company remains non-compliant.
During the extension period, HCW Biologics is required to promptly notify Nasdaq of any significant events that could affect its compliance status. The company must also file its Form 10-Q for the third quarter in a timely manner and provide updates on the progress of its compliance plan. The Panel retains the discretion to review documentation submitted by the company and may request additional information before confirming compliance with the terms of the extension.
The Panel may also reconsider its decision to grant the extension within 45 calendar days after issuing its written determination.
This information is based on a statement included in a recent SEC filing.
In other recent news, Wugen, Inc. has secured $115 million in equity financing, with Fidelity Management & Research Company leading the investment round. Other participants in this funding include RiverVest Venture Partners, Lightchain Capital, and several more firms. Meanwhile, HCW Biologics Inc. reported ongoing negotiations with WY Biotech regarding a $7 million upfront license fee that remains unpaid. The two companies are discussing further changes to their existing license agreement.
In another development, HCW Biologics announced progress in its cancer immunotherapy research, revealing a second-generation pembrolizumab-based therapy that has shown promising results against solid tumors in preclinical studies. This new therapy is particularly effective against pancreatic and ovarian cancers. However, HCW Biologics also received a delisting notice from Nasdaq due to non-compliance with the Equity Rule, and they plan to request a hearing to address this issue. The company is exploring options to regain compliance with Nasdaq’s listing requirements.
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