Hub Cyber Security Israel Ltd Stock Price, News & Analysis

HUB Cyber Security (NASDAQ: HUBC) has secured continued listing on the Nasdaq Stock Market following a review by the Nasdaq Hearings Panel on February 6, 2025. The Panel's decision came after HUBC successfully brought its market value of listed securities (MVLS) above the $35 million minimum requirement on February 7, 2025.

To maintain its listing, HUBC must meet two key conditions:

• File an application to transfer to The Nasdaq Capital Market by March 5, 2025
• Demonstrate compliance with minimum bid price and MVLS requirements by March 31, 2025

The company, specializing in confidential computing and secured data fabric technology, expects to fully meet these requirements by the specified deadline to maintain uninterrupted trading on Nasdaq.

HUB Cyber Security (NASDAQ: HUBC) has successfully resolved $16.6 million in legacy liabilities through strategic settlements with Oppenheimer & Co. and Dominion Capital, reducing the final settlement amount to $7.5 million. To support these settlements, the company secured $13.5 million from Claymore Capital through five-year, zero-interest convertible notes.

The financing structure eliminates $9.1 million in liabilities and requires no cash outlay from HUB, as all settlement payments will be covered by Claymore. This arrangement effectively refinances short-term liabilities and preserves the company's liquidity for growth initiatives. The settlements follow HUB's BlackSwan acquisition and executive-level restructuring, positioning the company to focus on its growth strategy and market opportunities.

HUB Cyber Security (NASDAQ: HUBC) has secured a six-month extension on $11 million in convertible notes plus accrued interest. The agreement includes the reclassification of warrants to purchase 13 million ordinary shares from debt to equity, strengthening the company's balance sheet. In exchange, the investor received warrants to purchase 2 million ordinary shares and pre-funded warrants for 10 million ordinary shares.

The company's CEO, Noah Hershcoviz, stated that this extension demonstrates their commitment to financial discipline and asset optimization. The restructuring aims to enhance operational flexibility and support the company's long-term growth strategy in the cybersecurity market.

HUB Cyber Security (NASDAQ: HUBC) has completed the acquisition of BlackSwan Technologies, positioning itself to target a projected $12.91 billion market by 2032. The strategic move aims to enhance HUB's capabilities in providing secured data fabric solutions for banks, financial institutions, and governments worldwide.

The companies have been collaborating for six months and are actively working to secure new contracts in regulatory tech. BlackSwan brings established operations across Germany, the UK, Sri Lanka, Poland, and Israel, along with over $50 million in technology investments. The combined operations are projected to generate additional bookings exceeding $25 million in 2025.

HUB Cyber Security (NASDAQ: HUBC) announces progress in its acquisition of BlackSwan Technologies, with the definitive agreement signed on January 15, 2025. The transaction is expected to close around January 28, 2025, pending completion of routine regulatory and contractual requirements.

According to CEO Noah Hershcoviz, this transformative acquisition aims to position HUB as a potential market leader in secured data fabric solutions. The deal is anticipated to create opportunities for cross-selling and cost optimization, potentially accelerating profitability and cash flow generation.

HUB Security (NASDAQ: HUBC) received a Staff Delisting Determination from Nasdaq due to non-compliance with the minimum bid price requirement. The company was given until January 13, 2025, to meet the minimum bid price requirement but failed to do so. In response, HUB Security appealed the decision on December 18, 2024, with a hearing scheduled for February 6, 2025.

The appeal temporarily stays any suspension or delisting action pending the hearing outcome. While there's no guarantee of continued listing, the company believes its improved financial position supports maintaining its listing status. This follows a previous notification on December 11, 2024, regarding potential delisting due to an inadequate compliance plan that failed to demonstrate the company's ability to achieve and sustain compliance with listing requirements.

HUB Cyber Security (NASDAQ: HUBC) has announced a definitive agreement to acquire BlackSwan Technologies in a stock-for-stock transaction, where BlackSwan shareholders will own approximately 31% of the combined entity. The acquisition is expected to close next week, subject to customary conditions.

BlackSwan brings existing contracts with major banking institutions and proprietary AI-powered secured data fabric technology that reduces complex financial systems' total cost of ownership by 50%. Over $50M has been invested in developing BlackSwan's solutions. The company has presence in Sri Lanka, Poland, Germany, the UK, and Israel.

The combined market opportunity is estimated at over $500 million, with expected growth in 2025 and 2026. The merger aims to enhance HUB's cybersecurity framework with BlackSwan's technology to offer improved compliance solutions, data protection, and reduced operational costs through AI-driven processes.

HUB Cyber Security (NASDAQ: HUBC) has filed an update to its registration statement with the SEC on December 31, 2024. The filing includes shares related to potential future issuances from convertible notes conversion and warrant exercises. A significant portion of currently outstanding shares serve as loan securities held by key investors, which will be cancelled upon loan repayment.

The company indicates this is a preliminary step before an expected significant financing round, which they anticipate will enable loan repayment before the loan securities convert to shares. CEO Noah Hershcoviz states these updates are part of their strategy to strengthen HUB's financial position and support future growth while maintaining investor transparency.

HUB Cyber Security (NASDAQ: HUBC) has successfully restructured $7 million of its secured debt with United Mizrahi Tefahot Bank through a settlement agreement signed on December 19, 2024. The agreement covers over 60% of HUB's secured debt through its subsidiary Comsec and defers principal payments until June 2025.

The restructuring aligns with HUB's expected free cash flow generation and enhances the company's liquidity. HUB is also in advanced negotiations to refinance the remainder of its secured debt, with completion expected in Q1 2025. The company aims to settle or extend most of its outstanding debt to achieve financial stability and support its growth trajectory.