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TEL AVIV - Hub Cyber Security Ltd. (NASDAQ:HUBC), a company specializing in confidential computing and cybersecurity, has announced a reverse share split of its ordinary shares at a ratio of 1-for-10. The adjustment in share capital is set to take effect at the close of business today, with shares trading on a split-adjusted basis at market open on Monday. The company’s stock, currently trading at $0.44, has experienced significant pressure with a -27.84% year-to-date return, according to InvestingPro data.
The reverse share split is designed to consolidate every 10 issued and outstanding ordinary shares into one ordinary share. This process will not issue any fractional shares; instead, fractional holdings will be rounded down to the nearest whole share. This action aims to increase the per share trading price of the company’s ordinary shares, potentially helping Hub Security to meet Nasdaq’s minimum bid price requirement. InvestingPro analysis reveals concerning fundamentals, including significant cash burn and a weak financial health score of 1.38 out of 5. Subscribers can access 10 additional key insights about HUBC’s financial condition.
All shareholders will be affected uniformly by the reverse split, preserving their percentage ownership in the company, except for minor adjustments due to the rounding down of fractional shares. The company’s derivative securities, including outstanding notes, options, warrants, and restricted share units, will also be adjusted in accordance with the terms of these instruments to maintain their economic effect post-reverse split.
Hub Security’s warrants will continue trading under their current symbols, HUBCW and HUBCZ, without a change in CUSIP numbers. However, the ordinary shares will be assigned a new CUSIP number, M6000J168, upon the commencement of split-adjusted trading.
The decision for the reverse stock split follows the company’s filing of a proxy statement with the Securities and Exchange Commission on February 4, 2025, which provided additional details on the move. The reverse split is part of the company’s efforts to comply with Nasdaq Listing Rule 5450(a)(1), which requires a minimum bid price for continued listing on the exchange.
Hub Cyber Security, founded by veterans of the Israeli Defense Forces’ elite intelligence units, offers a range of cybersecurity solutions and services globally. The company’s focus is on protecting sensitive commercial and government information through advanced encrypted computing solutions and data theft prevention technologies. With a market capitalization of $35.45 million and challenging financial metrics, including negative EBITDA of -$12.35 million in the last twelve months, the company faces significant operational hurdles. InvestingPro subscribers can access detailed financial analysis, including comprehensive valuation metrics and growth projections.
This news is based on a press release statement from Hub Cyber Security Ltd.
In other recent news, HUB Cyber Security Ltd. has completed the acquisition of BlackSwan Technologies, aiming to bolster its security and compliance offerings for financial institutions and governmental bodies. This merger is anticipated to enhance HUB’s market position in secured data fabric solutions. In addition, HUB Cyber Security has successfully negotiated settlements with Oppenheimer & Co. Inc. and Dominion Capital, reducing claims from $16.6 million to $7.5 million, with financial support from Claymore Capital Pty Ltd. Through these strategic settlements, HUB has improved its financial flexibility, allowing it to concentrate on growth initiatives.
Furthermore, HUB has been granted a 14-day extension by the Nasdaq Hearings Panel to meet the minimum bid price requirement for continued listing, reflecting the Panel’s confidence in the company’s recent developments. A significant leadership change has also occurred, with Ms. Renah Persofsky appointed as the new Active Chairperson of the Board, succeeding Mr. Kasbian Nuriel Chirich. These developments are part of HUB’s broader strategy to enhance its corporate governance and support its mission.
The company has also restructured its debt through a comprehensive plan, including a settlement with Dominion Capital LLC over a $2.5 million promissory note and a breach of contract claim by Oppenheimer & Co. Inc. The restructuring involves Claymore Capital covering payments in exchange for convertible notes, aiming to resolve legacy liabilities and secure favorable financing terms. These recent steps reflect HUB’s commitment to addressing financial challenges and positioning itself for future growth.
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