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TEL AVIV - HUB Cyber Security Ltd. (NASDAQ: HUBC), a company specializing in advanced cybersecurity solutions, has been granted a 14-day extension by the Nasdaq Hearings Panel to meet the minimum bid price requirement for continued listing on the Nasdaq Stock Market. The company now has until April 14, 2025, to maintain its share price at $1 or higher for 10 consecutive trading days. Currently trading at $0.41, the stock has declined over 40% year-to-date, according to InvestingPro data.
The decision to allow more time for compliance follows the Panel’s review of HUB’s recent developments and the company’s progress updates. CEO Noah Hershcoviz expressed that the extension reflects the Panel’s confidence in HUB’s recent achievements and its strategic direction. InvestingPro data reveals concerning metrics about the company’s financial health, with an overall score of 1.18 (labeled as WEAK) and rapidly diminishing cash reserves.
Founded in 2017 by veterans of the Israeli Defense Forces’ elite intelligence units, HUB Cyber Security offers encrypted computing technologies and data theft prevention solutions to clients in over 30 countries. The company’s focus is on preventing hardware-level intrusions and safeguarding sensitive commercial and government information.
The extension by the Nasdaq Hearings Panel is part of the regulatory oversight to ensure that listed companies meet financial and liquidity standards. HUB’s compliance with the Market Value of Listed Securities requirement was also a factor in the Panel’s decision. With a market capitalization of just $14.31 million and a concerning current ratio of 0.21, the company faces significant liquidity challenges.
This announcement is a forward-looking statement and, like all such statements, comes with inherent risks and uncertainties that could cause actual results to differ materially from those anticipated. These include but are not limited to economic conditions, geopolitical risks, legal proceedings, and market trends. The company’s future performance could be influenced by various factors, including its ability to manage growth, maintain key business relationships, and effectively invest in expansion initiatives.
Investors are cautioned that forward-looking statements involve risks and uncertainties that may affect HUB’s business and prospects. The information in this article is based on a press release statement from HUB Cyber Security. InvestingPro analysis highlights the stock’s high volatility, with a beta of -3.6, indicating significant price swings contrary to market movements. Subscribers can access 11 additional ProTips and comprehensive financial metrics to better assess the company’s risks and opportunities.
In other recent news, HUB Cyber Security Ltd. has finalized the acquisition of BlackSwan Technologies, aiming to bolster its security and compliance offerings for financial institutions and government bodies globally. This strategic move is expected to enhance HUB’s market position in secured data fabric solutions, with potential revenue increases projected at over $25 million in 2025. Additionally, HUB Cyber Security has settled significant lawsuits with Dominion Capital LLC and Oppenheimer & Co., Inc., reducing $16.6 million in claims to $7.5 million. These settlements were facilitated by Claymore Capital Pty Ltd., which provided $13.5 million through long-term convertible notes, allowing HUB to handle its obligations without immediate cash expenditure.
The company has also restructured $7 million of its secured debt with United Mizrahi Tefahot Bank, deferring principal payments until mid-2025. This restructuring covers more than 60% of HUB’s secured debt, improving its liquidity and aligning with its growth strategy. HUB is negotiating to refinance the remaining portion of its secured debt, with completion expected in the first quarter of 2025. These financial maneuvers are part of HUB’s broader strategy to secure financing on favorable terms and focus on expansion. The company continues to operate in over 30 countries, providing cybersecurity solutions to a diverse client base.
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