HUB Cyber Security Receives Nasdaq Non-compliance Notification
HUB Cyber Security Ltd (Nasdaq: HUBC), a prominent developer of cybersecurity solutions and services, has been informed by the Listing Qualifications department of The Nasdaq Stock Market LLC. This notification, dated August 23, reveals that the company is currently not meeting the Nasdaq Listing Rule 5450(b)(3), which relates to the Total Assets and Total Revenue Requirement.
Details of the Non-compliance Notification
The notification indicates that HUB Cyber Security's total assets and total revenue for the most recently completed fiscal year, as well as for two of the last three fiscal years, fell below the $50 million minimum threshold necessary for continued listing on the Nasdaq Global Market. As a result, the company is taking swift action to resolve these compliance issues.
Effects on Trading and Future Actions
It's important to highlight that, despite this notification, there is no immediate impact on the trading of the company’s ordinary shares. HUB Cyber Security's shares will continue to trade under the ticker symbol “HUBC” as usual. However, according to Nasdaq regulations, the company must submit a Compliance Plan within 45 calendar days, which is by October 7, to outline how it intends to achieve compliance with the listing criteria.
Looking Ahead
If Nasdaq approves the Compliance Plan, the company might be granted an extension of up to 180 days to meet the necessary listing requirements. This extension could provide HUB with the opportunity to regain compliance status by February 19 of the following year. Conversely, if the Compliance Plan is not accepted, HUB Cyber Security could face delisting, but they would have the option to appeal the decision by requesting a hearing before the Nasdaq Hearings Panel.
Path to Regaining Compliance
HUB is currently evaluating its options to achieve compliance with Nasdaq's ongoing listing standards. This process involves reviewing its financial situation and considering strategies to enhance its total assets and revenue. The company is committed to leveraging its expertise in cybersecurity to improve operational performance and drive revenue growth.
About HUB Cyber Security
Founded in 2017 by veterans from elite intelligence units, HUB Cyber Security specializes in innovative cybersecurity solutions that safeguard sensitive information for both commercial enterprises and government agencies. With operations in over 30 countries, the company is recognized for its advanced encrypted computing solutions and a wide array of cybersecurity services designed to prevent data breaches and improve user safety in digital environments.
Frequently Asked Questions
What is the main issue HUB Cyber Security is facing?
HUB Cyber Security has received a notification from Nasdaq indicating that it does not meet the minimum total assets and total revenue requirements necessary for continued listing.
What is the threshold for total assets and revenue for Nasdaq compliance?
The minimum requirement for continued listing on Nasdaq is a total of $50 million in total assets and revenue for the most recently completed fiscal year and two of the last three fiscal years.
How long does HUB Cyber Security have to respond to Nasdaq?
HUB has 45 calendar days from the notification date, specifically until October 7, to submit a Compliance Plan to Nasdaq.
What happens if HUB's Compliance Plan is not accepted?
If the Compliance Plan is rejected, the company may face delisting, and it can then request a hearing before the Nasdaq Hearings Panel.
How does HUB Cyber Security plan to regain compliance?
HUB is exploring various strategies aimed at increasing its total assets and revenue, focusing on its strengths in the cybersecurity industry.
