Hub Cyber Security’s 1-for-10 Reverse Share Split: An Explanation
Hub Cyber Security Ltd. (HUB Security), a pioneering company in the field of confidential computing and secured data fabric technology, recently announced a significant corporate action. On March 27, 2025, the Company declared a 1-for-10 reverse share split of its ordinary shares, no par value per share. This move comes with corresponding adjustments to HUB Security’s share capital.
Understanding the Reverse Share Split
A reverse share split is the opposite of a traditional share split. Instead of issuing more shares for each existing share, the number of outstanding shares is reduced. In this case, every 10 shares will be consolidated into 1 share. This adjustment is intended to increase the perceived value of each share and potentially attract investors who might have been deterred by a low share price.
Effective Dates and Trading Symbols
The reverse share split and corresponding share capital adjustment will become effective at 11:59 p.m. Eastern Time on Friday, March 28, 2025. HUB Security’s ordinary shares will begin trading on a split-adjusted basis on The Nasdaq Stock Market LLC (“Nasdaq”) at the open of business on Monday, March 31, 2025. The shares will continue to trade under the existing symbol “HUBC,” but they will now have a new CUSIP number, M6000J168. HUB Security’s outstanding warrants will continue to be traded under the symbols “HUBCW” and “HUBCZ,” with the CUSIP numbers for such warrants remaining unchanged.
Implications for Shareholders
- Each shareholder will receive additional shares proportionally based on their pre-split holdings.
- Cash amounts payable in connection with the reverse share split will be proportionally adjusted.
- Shareholders who hold their shares in book-entry form with a broker, bank, or other nominee will not need to take any action.
- Shareholders who hold physical certificates should contact their transfer agent, Equiniti Trust Company, for instructions on how to exchange their certificates.
Impact on the Global Market
The reverse share split is primarily an internal corporate action for HUB Security. However, it could potentially impact the global market in a few ways:
- Increased investor interest: A higher share price may attract more investors to the stock.
- Altered market capitalization: The reverse share split will decrease HUB Security’s market capitalization, but this doesn’t necessarily reflect the Company’s underlying value.
- Broader market trends: Reverse share splits have become increasingly common as a way for companies to manipulate their stock prices and gain investor attention.
Conclusion
Hub Cyber Security’s announcement of a 1-for-10 reverse share split marks a strategic move to enhance the perceived value of its ordinary shares and potentially attract new investors. Shareholders should be prepared for the adjustments that come with this corporate action, while the global market may experience some indirect effects. As always, it’s crucial for investors to stay informed and make decisions based on thorough research and analysis.
