Hub Cyber Security Ltd. current report, Q4 FY2023

Hub Cyber Security Ltd. — Form 6-K Summary

Business Context and Reporting Period

Hub Cyber Security Ltd., an Israeli foreign private issuer, furnished this Form 6-K for December 2023. The reported events occurred primarily on December 4, 2023, with financing approved on November 30, 2023.

Key Financial and Capitalization Matters

ItemDetails
FinancingPrivate sale to accredited investors of convertible promissory notes with aggregate principal of up to $1.6 million, together with warrants.
Interest and maturityThe notes bear no interest and are repayable three months after issuance, subject to earlier conversion.
Conversion termsConversion price is the lower of $0.25 or 75% of the five-trading-day volume-weighted average price before conversion, subject to a floor of $0.15.
WarrantsWarrants are exercisable through January 1, 2027, at an exercise price equal to the ordinary share closing price on the applicable issuance date.
Ownership limitationConversion and warrant exercise are limited so that an investor and its affiliates do not beneficially own more than 4.99% of the ordinary shares.

The filing does not provide revenue, profit, cash flow, margin, existing debt, cash balance, liquidity, or other operating financial metrics.

Material Changes Versus the Prior Comparable Period

  • No period-over-period financial results are reported.
  • Effective December 4, 2023, Noah Hershcoviz, previously Chief Strategy Officer and a Board member, became Chief Executive Officer.
  • Uzi Moskovitch, the former Chief Executive Officer, remains on the Board as an active director.
  • The company approved a potentially dilutive financing involving convertible notes and warrants.

Guidance, Outlook, Risks, and Unusual Items

  • No financial guidance, operating forecast, or quantitative outlook is included in the filing.
  • The financing may increase short-term obligations if the notes are not converted and may dilute existing shareholders upon conversion or warrant exercise.
  • Conversion pricing can be based on a discount to the market price, subject to a $0.15 floor, creating potential dilution at below-market prices.
  • The notes and warrants include a 4.99% beneficial-ownership limitation for each investor and its affiliates.
  • The filing states that the transaction summary is not comprehensive and that the transaction documents contain customary representations, warranties, and covenants.
  • The accompanying press release is furnished rather than filed for purposes of Section 18 of the Exchange Act, unless otherwise expressly incorporated by reference.

Investor Verification Checklist

  • Verify the final principal amount issued, issuance dates, and the identities of participating investors.
  • Review the complete purchase agreement, notes, and warrants for additional covenants, default provisions, and dilution terms.
  • Confirm whether the notes were converted, repaid, or remained outstanding after the three-month maturity date.
  • Assess the impact of any subsequent share issuances, conversions, or warrant exercises on capitalization and ownership.
  • Review subsequent filings for the effect of the CEO transition on strategy, execution, and financial performance.