HCW Biologics Inc. announced that it has entered into a secured development line of credit agreement with Prime Capital for aggregate principal amount not to exceed $26.25 million with a scheduled maturity date of April 20, 2028 on April 20, 2023. The note issued pursuant to the agreement bears interest at a fixed rate of 7%, due monthly in arrears on the first day of each month, and the outstanding principal on the note shall be due and payable in full on the maturity date. Under the agreement, within 10 days of receipt of the executed agreement by each of the company and the lender, the company will be required to wire $5.25 million to lender to serve as a reserve for the payment of interest under the agreement.

In addition, out of the initial advance, the company shall pay to the lender a non-refundable fee in the amount of $1.25 million.