HUB Cyber Security Ltd. (NASDAQ: HUBC) will consolidate its ordinary shares at a 1‑for‑15 ratio, a move designed to lift the per‑share price above Nasdaq’s $1.00 minimum bid‑price requirement. The reverse split will take effect at 11:59 p.m. Eastern on Thursday, January 15, 2026, and the newly adjusted shares will begin trading on the Nasdaq exchange on the following market day, Friday, January 16, 2026, under the same ticker symbol and a new CUSIP number, M6000J200.
The company’s board explained that the split does not alter the total value of shareholders’ holdings or the ownership structure; it simply consolidates 15 existing shares into one and eliminates fractional shares by rounding down any remaining fractions. The reverse split follows a prior 1‑for‑10 reverse split that became effective on March 31, 2025, underscoring ongoing challenges in maintaining a share price that satisfies Nasdaq’s listing standards.
HUB Cyber Security’s financials reveal a company in transition. For the first half of 2025, revenue fell to $15.1 million from $15.7 million in the same period of 2024, while the net loss widened to $41.8 million from $27.1 million. Despite the revenue decline, gross margin improved markedly to 23% from 10% in the prior half‑year, reflecting a shift toward higher‑margin software and AI‑driven solutions. The company’s cash position remains tight, with $917,000 in cash and cash equivalents and a shareholders’ deficit of $58.2 million as of June 30, 2025.
Management has framed the reverse split as a necessary step to preserve Nasdaq listing status while the company continues to restructure its balance sheet and accelerate its software‑centric strategy. CEO Noah Hershcoviz emphasized that the Nasdaq extension is a sign of confidence in HUB’s progress and that the company is “fully channel ready” to scale its Secured Data Fabric platform and AI offerings. The reverse split, while a negative signal to some investors, is part of a broader effort to align the capital structure with the company’s high‑margin, subscription‑based model.
Market reaction to the announcement was sharply negative, with the stock falling 23% in after‑hours trading and trading at $0.31 in pre‑market activity. The steep decline reflects investor concern that the need for a second reverse split signals persistent difficulty in sustaining a share price above the Nasdaq minimum, compounded by the company’s widening losses and limited liquidity.
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