The Israeli cybersecurity company Hub Security is dreaming of completing a huge IPO in the U.S., but in the meantime its coffers are emptying and the difficulties ahead of its merger with a SPAC are piling up, CTECH reports. These include the exit of one of the investors, the difficulty of diversifying the investor profile and changes at the top of the company.
Will the merger be completed and the company, which has already announced that it will be delisted from trading on the Tel Aviv Stock Exchange, begin trading on Nasdaq?
Hub Security was supposed to complete the deal at a value of $1.28 billion at the beginning of this month. It is currently traded on the Tel Aviv Stock Exchange with a market cap of approximately $196 million.
However, two weeks ago the company announced that it was postponing the completion date of the merger to the end of this month. One of the investors in the company, the Clover Wolf hedge fund, withdrew and decided not to invest in the company as part of the merger. This $10 million investment was part of the PIPE fundraising.
The SPAC partnering with Hub, Mount Rainier Acquisition, at one point had enough funding from the PIPE alone to cover the $50 million minimum cash condition for closing.
HUB develops and markets confidential computing solutions and services that aim to disrupt cybersecurity for enterprises and governments worldwide. Read more.
