Less than two months for the Israeli company Cyber Security HUB (TASE: HUB) delisting from Nasdaq has begun, and it has been announced that the company is investigating whether founder and former CEO Eyal Moshe misappropriated the company’s funds. The company has appointed a private investigator who has provided the company with information from his investigation and at this stage the company continues its examination in order to substantiate its findings and verify whether all the expenses incurred in recent years were indeed for the needs of the company.
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HUB Security seeks delisting from TASE after SPAC merger
HUB Cyber Security arrived on Wall Street after experiencing some difficulties. The company began trading on the Tel Aviv Stock Exchange (TASE) after a reverse merger with ALD and one year after that announced a $1.28 billion SPAC merger, four times its market capitalization in TASE.
The company hoped the US market would know how to improve pricing for its cybersecurity activities and feared that trading in TASE would affect its shareholding, and so sought court approval to delist from TASE once it began trading on the NASDAQ.
HUB Cyber Security’s current market capitalization is $143 million, which is less than its market value when it was delisted from TASE. This is due to the difficulties it had in completing the fund raised as part of its NASDAQ listing because investors who committed to the offering did not transfer funds and the company is in talks with them about this.
Shortly before the completion of the SPAC merger, HUB Cyber Security unexpectedly announced management changes. CEO and founder Eyal Moshe became President of American Operations and replaced Uzi Moskowitz, former head of the IDF’s Electronic and Defense Communications Division, as CEO.
As far as is known, there were no suspicions of embezzlement before the IPO and before the management changes, but after Moskowitz took over as CEO and examined the company’s revenues and expenses, the suspicions that are now being investigated were raised.
Published by Globes, Israel business news – en.globes.co.il – on April 20, 2023.
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