TEL AVIV – HUB Security Ltd (NASDAQ:HUBC), a cybersecurity solutions developer, has been notified by the Nasdaq Stock Market of non-compliance with the exchange's minimum bid price requirement, according to a company statement. The Tel Aviv-based firm's share price has been below the $1.00 threshold for 30 consecutive business days, triggering a warning from Nasdaq.
Under Nasdaq Listing Rule 5450(a)(1), listed companies must maintain a minimum bid price of $1.00 per share. HUB Security has been given an initial 180-calendar day period, ending on January 13, 2025, to address the deficiency and regain compliance. To achieve this, the company's shares must close at $1.00 or higher for at least 10 consecutive business days within this timeframe.
If HUB Security fails to meet the requirement during the initial period, it may be eligible for a second 180-day grace period, provided it fulfills all other continued listing standards and notifies Nasdaq of its intent to correct the bid price shortfall.
The notification has no immediate impact on the trading of HUB Security's ordinary shares, which continue to be listed on Nasdaq under the ticker symbol "HUBC." The company's business operations remain unaffected by the notice.
HUB Security has stated its intention to monitor its share price closely and explore options to regain compliance with Nasdaq's requirements. Still, if the company does not achieve compliance within the granted period(s), including any extensions, it may face delisting, subject to the outcome of any appeal to the Nasdaq Hearing Panel.
The information in this article is based on a press release statement from HUB Security Ltd.
In other recent news, HUB Cyber Security, an Israeli-based cybersecurity firm, has announced several significant developments. The company has secured two government contracts, demonstrating its strategic growth within the cybersecurity domain.
Moreover, HUB Cyber Security is progressing toward a settlement in a $12 million dispute with Oppenheimer & Co., related to a SPAC merger. The firm has also secured an $8 million straight debt arrangement and won a $2 million contract with the Israel Airports Authority.
In collaboration with BlackSwan Technologies, HUB Cyber Security plans to showcase its Secured Data Fabric solution at the upcoming Money 20/20 event. This solution focuses on protecting data in transit and at rest, ensuring the confidentiality and integrity of sensitive information.
However, the company has delayed the filing of its annual financial statements for the fiscal year ended December 31, 2023, due to ongoing debt restructuring efforts and the recent acquisition of QPoint. In response to legal actions initiated by Dominion, HUB Cyber Security has filed a counterclaim in New York. These are the recent developments from HUB Cyber Security, showcasing their strategic decisions and activities.
InvestingPro Insights
In light of the recent notice of non-compliance from Nasdaq regarding its share price, HUB Security Ltd (HUBC) faces significant challenges. According to InvestingPro Tips, the company is quickly burning through cash and suffers from weak gross profit margins. Additionally, HUBC has been trading at a low revenue valuation multiple, which could be a contributing factor to its lackluster share price performance.
InvestingPro Data paints a stark picture of the company's recent financial performance. HUB Security's market capitalization has adjusted to a mere 6.99 million USD, and the company's return on assets for the last twelve months as of Q2 2024 stands at a concerning -174.61%. Moreover, the 1-year price total return as of 2024 indicates a dramatic decrease of -82.92%, underscoring the significant decline in investor confidence.
Despite these challenges, InvestingPro offers a glimmer of hope with a fair value estimation of 0.97 USD for HUBC shares. This suggests that there may be potential for the stock to rebound closer to the Nasdaq's minimum bid price requirement, provided the company can address its underlying financial issues.
For investors looking for more in-depth analysis and additional tips, InvestingPro provides 9 more tips to help navigate the complexities of HUB Security's financial landscape. To access these insights and enhance your investment strategy, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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