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Hub Cyber Security Ltd. 6-K Filing: Key Legal Settlements and Financial Strategies Revealed

$HUBC
Form 6-K
Filed on: 2025-02-20
Source
Hub Cyber Security Ltd. 6-K Filing: Key Legal Settlements and Financial Strategies Revealed

Key Information and Insights from Hub Cyber Security Ltd.'s 6-K Filing:

  1. Company Overview:
  • Name: Hub Cyber Security Ltd.
  • Location: 2 Kaplan Street, Tel Aviv, Israel.
  • Commission File Number: 001-41634.
  • Reporting Period: February 2025.
  1. Legal Settlements:
  • Dominion Capital LLC Settlement:
    • Dominion Capital sued Hub Cyber Security for $2.5 million, claiming failure to repay a loan.
    • Summary judgment awarded to Dominion.
    • Settlement agreed for $4.5 million, with structured payment plan:
    • $400,000 due by February 21, 2025.
    • $200,000 due by March 3, 2025.
    • Remaining balance payable in ten monthly installments of $390,000 (March to December 2025).
    • Claymore Capital Pty Ltd. will make these payments on Hub's behalf in exchange for a $7.5 million convertible note.
    • The note is convertible into ordinary shares at a discount, with various conditions outlined.
  • Oppenheimer & Co. Settlement:
    • Oppenheimer filed a claim for over $12 million related to investment banking services.
    • Settlement reached for $3 million, structured as follows:
    • $1.1 million paid upfront on February 19, 2024.
    • Remaining balance in ten monthly payments starting March 2025.
    • Similar to the Dominion settlement, Claymore will cover these payments in exchange for a $6 million convertible note.
  1. Debt Restructuring:
  • The Company extended the maturity date of $11 million in convertible notes to August 16, 2025.
  • Interest rate will increase from 15% to 20% if unpaid or unconverted by April 1, 2025.
  • New unified exercise price for various warrants set at $0.50 per share, with a unified expiration date of February 17, 2030.
  1. Financial Implications:
  • Total liabilities resolved through settlements amount to approximately $16.6 million.
  • New financing secured of $13.5 million on favorable terms to improve liquidity.
  1. Risks and Forward-Looking Statements:
  • The filing includes forward-looking statements subject to risks and uncertainties that may affect the realization of these statements.
  • The Company warns against placing undue reliance on these projections.
  1. Management Sign-off:
  • The report is signed by Noah Hershcoviz, Chief Executive Officer, confirming its authenticity.

This filing reveals significant legal and financial maneuvers by Hub Cyber Security Ltd. to manage legacy liabilities through strategic settlements, which may impact its financial stability and shareholder value going forward.