HUB Security Faces Insolvency Filing and Upheld Asset Attachments

Axiag Consultants has filed a motion for insolvency proceedings against Nasdaq-listed HUB Security, citing an unpaid debt of nearly $100,000 and alleging the cybersecurity firm is effectively insolvent. Simultaneously, a court rejected HUB's request to lift attachments placed on Q Point shares, which HUB agreed to sell to Malam Team in August for $8.7 million.

HUB argued that maintaining the attachments would jeopardize the complex transaction and severely harm the company and the buyers, as proceeds were earmarked to reduce debts. However, the motion filed by Adv. Yoav Hartman claims that HUB's CFO stated the company lacks funds to pay July salaries and suffers from a severe cash flow deficit, recording a massive net loss and negative operational cash flow.

Once valued at $1.28 billion following its SPAC merger in February 2023, HUB has lost nearly 99% of its market value. The Tel Aviv District Court upheld the asset attachments requested by Y.H. Lahav Financial and Strategic Consulting, rejecting HUB's claims and keeping financial pressure mounting on the embattled cybersecurity provider amid ongoing regulatory investigations.