Hub Security Announces Successful $15 Million Refinancing and Capital Raising

Rhea-AI Summary

Hub Security (NASDAQ: HUBC) has announced a successful $15 million refinancing and capital raising initiative. This includes the restructuring of $8 million in existing debt, securing an extra $2 million in new debt, and raising $5 million through key shareholders exercising warrants at $0.90 per share. According to CEO Noah Hershcoviz, these financial steps indicate strong investor confidence and position the company to further enhance its cybersecurity offerings and advance its Secure Data Fabric roadmap.

Positive

• Restructured $8M in existing debt.
• Secured $2M in new debt financing.
• Raised $5M through warrant exercises.
• Indicates strong investor confidence.

Negative

• None.

Insights

Financial Analyst

From a financial standpoint, this news of $15 million refinancing and capital raising is significant. The refinancing of $8 million in debt reduces immediate financial stress, which is positive for the liquidity position of the company. The addition of $2 million in new debt also indicates that the company has access to credit markets even after the prior debt restructuring. The $5 million from warrant exercises, at a price of $0.90 per share, shows investor confidence in the firm’s future growth potential.

This move strengthens the balance sheet and provides the cash necessary to fund ongoing operations and new projects. However, investors should also consider the impact of new debt on the company's financial health in the long term. The ability to leverage this new capital effectively will be critical. Mismanagement could lead to financial instability.

Market Research Analyst

Hub Security’s ability to secure additional financing and capital raising showcases confidence from key shareholders and the market. This move positions the company to further invest in its Secure Data Fabric (SDF) roadmap, which could enhance its competitive edge in the cybersecurity sector. The exercise of warrants at $0.90 per share provides a valuation benchmark and suggests that investors see potential upside in the stock price.

The cybersecurity market is growing rapidly due to increasing cyber threats and companies like Hub Security are well-positioned to benefit from this trend. However, the market is also highly competitive and continuous innovation will be required to maintain and grow its market share.

Tech Expert

Hub Security's focus on enhancing its Secure Data Fabric (SDF) roadmap with the new capital infusion is a strategic move. SDF is designed to offer advanced data security services, which are important in today's digital age where data breaches and cyber threats are rampant. This technology could provide a significant competitive advantage by offering unique solutions to data protection challenges.

It is important for investors to understand that the successful development and deployment of cutting-edge cybersecurity solutions typically require substantial R&D investments. Therefore, the raised capital will likely be used efficiently in bolstering the company's technological capabilities and expanding its product offerings.

Total financing includes restructuring of $8M in debt, $2M in new debt, and $5M from warrant exercises

TEL AVIV, Israel, June 27, 2024 (GLOBE NEWSWIRE) -- via IBN – HUB Cyber Security Ltd. (NASDAQ: HUBC), a developer of confidential computing cybersecurity solutions and advanced data services, is pleased to announce that it has successfully restructured $8 million of its debt that was due this month.

In addition, Hub Security has secured an additional $2 million in debt financing. Key shareholders have also exercised warrants at an exercise price of $0.90 per share, resulting in an additional $5 million in capital.

"We are thrilled to have successfully completed these financial initiatives," said Noah Hershcoviz, CEO of Hub Security. "The refinancing of our debt, along with the additional debt financing and capital raised through the exercise of warrants, testifies to our investors' confidence in our vision and strategic direction. Our strengthened financial position allows us to continue to fulfill our commitment to delivering state-of-the-art solutions to our clients."

With these financing transactions, the company is well-positioned to further enhance its product offerings, advance its Secure Data Fabric (SDF) roadmap, and drive forward growth in the cybersecurity space.

For further information or inquiries, please contact:

info@hubsecurity.com

About HUB Security Ltd.

HUB Cyber Security Ltd ("HUB") was established in 2017 by veterans of the elite intelligence units of the Israeli Defense Forces. The Company specializes in unique cyber security solutions protecting sensitive commercial and government information. The company debuted an advanced encrypted computing solution to prevent hostile intrusions at the hardware level while introducing a novel set of data theft prevention solutions. HUB Security operates in over 30 countries and provides innovative
cybersecurity computing appliances and a wide range of cybersecurity services worldwide.

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, including statements about the anticipated benefits of the transaction, and the financial condition, results of operations, earnings outlook and prospects of the combined company. 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 Security’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, the potential effect on the availability of personnel who perform reserve duty, including the CEO, and the potential expansion of hostilities to other fronts, which may harm Israel’s economy and HUB Security’s business; (iii) expectations regarding HUB Security'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 Security's ability to invest in growth initiatives and pursue acquisition opportunities; (iv) the outcome of any legal or regulatory proceedings against HUB Security in connection with our previously announced internal investigation or otherwise; (v) the ability to cure and meet stock exchange continued listing standards; (vi) the risk that the consummation of the business combination in February 2023 will disrupt HUB Security's operations and future plans; (vii) competition, the ability of HUB Security to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; (viii) limited liquidity and trading of HUB Security’s securities; (ix) geopolitical risk, including military action and related sanctions,
and changes in applicable laws or regulations; (x) the possibility that HUB Security may be adversely affected by other economic, business, and/or competitive factors; (xi) other risks and uncertainties set forth in the sections entitled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in HUB Security’s Annual Report on Form 20-F filed on August 15, 2023.

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.

Wire Service Contact:

IBN
Los Angeles, California
www.InvestorBrandNetwork.com
310.299.1717 Office
Editor@InvestorBrandNetwork.com

FAQ

What recent financial activities has Hub Security (HUBC) completed?

Hub Security has completed a $15 million refinancing and capital raising initiative, including restructuring $8 million in debt, securing $2 million in new debt, and raising $5 million through warrant exercises.

How much debt has Hub Security (HUBC) restructured?

Hub Security has restructured $8 million in existing debt.

How much new debt financing did Hub Security (HUBC) secure?

Hub Security secured $2 million in new debt financing.

How much capital did Hub Security (HUBC) raise through warrant exercises?

Hub Security raised $5 million through the exercise of warrants by key shareholders at $0.90 per share.

What is the significance of Hub Security's (HUBC) recent financial activities?

The financial activities indicate strong investor confidence and position Hub Security to enhance its cybersecurity offerings and advance its Secure Data Fabric roadmap.