HUB Announces Reverse Share Split
Rhea-AI Summary
HUB Security (Nasdaq: HUBC) approved a 1-for-20 reverse share split of its ordinary shares. The split becomes effective at 11:59 p.m. ET on June 5, 2026, with HUBC starting split-adjusted trading on Nasdaq on June 8, 2026.
Every 20 existing shares will convert into one share, with no fractional shares issued and amounts rounded down. Outstanding shares will change from 66,603,152 to approximately 3,330,157. Derivative securities, including options and warrants, will be proportionally adjusted. The company believes this action will help support compliance with Nasdaq’s minimum bid price rule.
AI-generated analysis. Not financial advice.
Positive
- 1-for-20 reverse split effective June 5, 2026
- Shares outstanding reduced from 66,603,152 to about 3,330,157
- Company aims to support compliance with Nasdaq minimum bid price rule 5450(a)(1)
- Outstanding equity rights adjusted to maintain similar economic effect
Negative
- No fractional shares issued; holdings rounded down to nearest whole share
Market Reaction – HUBC
Following this news, HUBC has declined 64.44%, reflecting a significant negative market reaction. Our momentum scanner has triggered 43 alerts so far, indicating elevated trading interest and price volatility. The stock is currently trading at $0.23. This price movement has removed approximately $2M from the company's valuation.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.
Key Figures
Market Reality Check
Peers on Argus
HUBC was down 6.8% while peers in Software - Infrastructure showed mixed moves (e.g., UBXG -6.25%, VHC -5.63%, JG +1.35%). Momentum scanner peers also split between one up and one down, pointing to stock-specific pressure around HUBC’s reverse split.
Previous Stock split Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Apr 16 | Reverse share split | Negative | -29.5% | Announced 1-for-50 reverse split to consolidate shares and lift price. |
| Jan 14 | Reverse share split | Negative | -34.8% | Announced 1-for-15 reverse split aimed at Nasdaq bid-price compliance. |
| Mar 27 | Reverse share split | Negative | -18.0% | Announced 1-for-10 reverse split; adjusted all derivative securities accordingly. |
Past reverse share split announcements have been followed by consistently negative one-day moves, indicating a pattern of weak market reception to this type of action.
Over the past 18 months, HUBC has repeatedly turned to reverse share splits to address its low share price. Prior actions included 1-for-10, 1-for-15 and 1-for-50 splits, each followed by declines of -18.04%, -34.83% and -29.5%, respectively. Alongside these structural changes, the company has faced governance and compliance overhangs, including a Nasdaq deficiency notice for delayed Form 20-F filing. Today’s new 1-for-20 split continues this pattern of using share consolidation to manage Nasdaq listing requirements.
Historical Comparison
In the past, HUBC disclosed 3 reverse share splits tagged as stock splits, with an average 1-day move of -27.46%. This latest 1-for-20 action extends a pattern of frequent share consolidations tied to Nasdaq bid-price compliance.
HUBC has implemented multiple reverse share splits (1-for-10, 1-for-15, 1-for-50) and now adds a 1-for-20 action, reflecting an ongoing reliance on share consolidation to manage its trading price and listing compliance.
Market Pulse Summary
This announcement details a 1-for-20 reverse share split, cutting ordinary shares from 66,603,152 to 3,330,157 on a post-split basis and adjusting derivative securities to preserve economic terms. It follows several recent reverse splits aimed at meeting Nasdaq’s minimum bid requirement under Listing Rule 5450(a)(1). Historical data show prior split announcements were followed by sharp declines, and regulatory filings indicate flexibility for additional splits. Monitoring future equity issuance, compliance milestones and insider activity remains important for context.
Key Terms
cusip financial
nasdaq listing rule 5450(a)(1) regulatory
proxy statement regulatory
warrants financial
AI-generated analysis. Not financial advice.
TEL AVIV, Israel, June 03, 2026 (GLOBE NEWSWIRE) -- Hub Cyber Security Ltd. (Nasdaq: HUBC) (“HUB Security” or the “Company”), a global provider of confidential computing and secured data fabric technologies, today announced a 1-for-20 reverse share split of its ordinary shares, no par value per share (the “Ordinary Shares”). The reverse share split and corresponding share capital adjustment will become effective at 11:59 p.m. Eastern Time on Friday, June 5, 2026. The Ordinary Shares will begin trading on a split-adjusted basis on The Nasdaq Stock Market LLC (“Nasdaq”) at the open of business on Monday, June 8, 2026, under the existing trading symbol “HUBC,” but the Ordinary Shares will trade under a new CUSIP number, M6000J192. HUB Security’s outstanding warrants will continue to be traded under the symbols “HUBCW” and “HUBCZ” and the CUSIP numbers for such warrants will remain unchanged.
As a result of the reverse share split, every 20 issued and outstanding Ordinary Shares will automatically be converted into one Ordinary Share. No fractional shares will be issued as a result of the reverse share split. Instead, all fractional shares will be rounded down to the nearest whole share. The reverse share split affects all shareholders uniformly and will not alter any shareholder’s percentage ownership interest in the Company’s issued and outstanding Ordinary Shares, except for adjustments that may result from the treatment of fractional shares. As of the date hereof, the Company had 66,603,152 Ordinary Shares issued and outstanding, which, following the effectiveness of the reverse share split, will result in 3,330,157 Ordinary Shares outstanding on a post-split basis (taking into effect the settlement of fractional shares).
The reverse share split will also affect the Company’s derivative securities, including outstanding notes, options, warrants and restricted share units (collectively, the “Outstanding Equity Rights”). Generally, the plans and other documents pertaining to the Outstanding Equity Rights include provisions providing for adjustments in the event of a reverse share split in order to maintain the same economic effect. Specifically, the exercise price and the number of Ordinary Shares issuable pursuant to Outstanding Equity Rights will be adjusted pursuant to the terms of such instruments in connection with the reverse share split.
The Company believes the reverse share split will increase the per share trading price of the Ordinary Shares and enable the Company to maintain compliance with the minimum bid price requirement in Nasdaq Listing Rule 5450(a)(1).
Additional information regarding the reverse share split can be found in the Company’s proxy statement furnished to the Securities and Exchange Commission on April 7, 2026.
For further information or inquiries, please contact: info@hubsecurity.com
About HUB Security Ltd.
HUB Cyber Security Ltd. (Nasdaq: HUBC) is a global leader in confidential computing, AI-driven data fabric, and cybersecurity. HUB’s Secured Data Fabric (SDF) empowers organizations to virtualize, secure, and analyze sensitive data across borders and silos generating real-time intelligence while meeting the highest regulatory standards. With operations across North America, Europe, and Israel, HUB partners with Fortune 100 companies, global banks, and sovereign institutions to secure the next generation of digital infrastructure.
Forward-Looking Statements
This press release contains forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words such as “plan,” “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “future,” “forecast,” “project,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict,” “seem,” “should,” “will,” “would” and other similar words and expressions, but the absence of these words does not mean that a statement is not forward-looking.
The forward-looking statements are based on the current expectations of the management of HUB Security, as applicable, and are inherently subject to uncertainties and changes in circumstances and their potential effects and speak only as of the date of such statement. There can be no assurance that future developments will be those that have been anticipated. These forward-looking statements involve a number of risks, uncertainties, or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those discussed and identified in public filings made with the SEC by the HUB Security and the following: (i) significant uncertainty regarding the adequacy of HUB’s liquidity and capital resources and its ability to repay its obligations as they become due; (ii) the war between Israel and Hamas commenced in October 2023, which may harm Israel’s economy and HUB’s business; (iii) expectations regarding HUB’s strategies and future financial performance, including its future business plans or objectives, prospective performance and opportunities and competitors, revenues, products and services, pricing, operating expenses, market trends, liquidity, cash flows and uses of cash, capital expenditures, and HUB’s ability to invest in growth initiatives and pursue acquisition opportunities; (iv) the outcome of any legal or regulatory proceedings against HUB in connection with our previously announced internal investigation or otherwise; (v) the ability to meet stock exchange continued listing standards and remain listed on the Nasdaq; (vi) competition, the ability of HUB to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; (vii) limited liquidity and trading of HUB’s securities; (viii) geopolitical risk, including military action and related sanctions, and changes in applicable laws or regulations; (ix) the possibility that HUB may be adversely affected by other economic, business, and/or competitive factors; and (x) other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements” in HUB’s Annual Report on Form 20-F filed on May 1, 2025. Should one or more of these risks or uncertainties materialize or should any of the assumptions made by the management of HUB prove incorrect, actual results may vary in material respects from those expressed or implied in these forward-looking statements.
Should one or more of these risks or uncertainties materialize, or should any of the assumptions made by the management of HUB Security prove incorrect, actual results may vary in material respects from those expressed or implied in these forward-looking statements.
All subsequent written and oral forward-looking statements concerning the business combination or other matters addressed in this press release and attributable to HUB Security or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in the press release. Except to the extent required by applicable law or regulation, HUB Security undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date of this press release to reflect the occurrence of unanticipated events.
