HUB also announces a 6-month extension of its Senior Secured Debt Facility, providing added balance-sheet flexibility and establishing the conditions for full repayment in the near future

HUB Cyber Security Ltd., a global leader in zero-trust confidential computing and advanced secured data fabric technology, announced that it has entered into definitive agreements for up to $20 million in a subordinated convertible note private placement financing, with more than 50% led by existing investors. The financing underscores institutional confidence in HUB’s strategic vision, market-leading platform, and ability to execute large, transformative enterprise deals. The Company expects to use the proceeds from the financing to reduce debt, accelerate U.S. operations, and expand HUB’s AI-powered enterprise intelligence and crypto infrastructure capabilities. The financing is expected to be provided under multiple closings, which are subject to the satisfaction of customary closing conditions.

The financing is structured as subordinated convertible notes, with interest of 4.0% per annum payable quarterly (in cash or shares, subject to certain equity conditions) and with a maturity date of August 2027. The total gross proceeds of the financing are expected to be approximately $20 million, before deducting estimated offering expenses and placement agent fees payable by HUB. 

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“This financing marks a defining inflection point for HUB,” said Noah Hershcoviz, Chief Executive Officer of HUB. “I want to thank all of our shareholders for their support; it underscores their confidence in our strategy and vision. Institutions are now recognizing the critical importance of the core infrastructure we are delivering. As regulatory clarity advances and technology challenges intensify, we believe that HUB is uniquely positioned as the bridge connecting AI, compliance, and digital asset infrastructure. This capital is expected to enable us to scale-up operations, pursue transformative enterprise deals, and expand strategically across North America, driving shareholder value through sustained growth and profitability, backed by a world-class management team and a robust, high-value pipeline of opportunities that we believe positions HUB for sector leadership.”

Rodman & Renshaw LLC is acting as sole placement agent for the financing. For further details, please see HUB’s Form 6-K filing, which HUB will file with the Securities and Exchange Commission.

At the center of HUB’s offering is its AI-native Secured Data Fabric (SDF) platform, the institutional control layer for regulated data. Existing enterprise intelligence systems mostly rely on data lake solutions which cost billions and take years to implement and are often massively vulnerable. HUB’s Secured Data Fabric on the other hand, takes merely months to implement, costs only millions to deploy, and is highly secure. HUB’s SDF is in use across Tier-1 banks and government contracts, delivering measurable results, including a 50% reduction in compliance costs and dramatically faster digital onboarding and monitoring. Funds from this capital raise will be used to scale HUB’s SDF and AI intelligence capabilities in new regions and across new verticals. 

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HUB is also seeing demand for its AI-powered SDF product across a range of new industries, specifically within Crypto infrastructure. The platform provides the ideal foundation for Crypto infrastructure evolution, securely managing vast volumes of sensitive data across diverse systems. It offers solutions, including MPC custody, AI-supervised compliance, zero-knowledge proofs, programmable workflows, transaction monitoring, and post-quantum cryptography defence. Institutions are now acknowledging they need infrastructure that is digital-asset ready, compliant, programmable, and interoperable. 

HUB operates in six countries and has invested approximately $200 million into its platform to date. While the Company has historically focused on Israel and Europe, this financing enables accelerated North American expansion amid strong interest from U.S. and Canadian institutions. HUB has recently made key hires in North America and looks forward to growing its North American business over the next 18 months. 

The securities being issued and sold in the private placement have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state’s securities laws, and will be issued and sold in a private placement in reliance on Section 4(a)(2) of the Securities Act. The securities may not be offered or sold in the United States, except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act. HUB granted registration rights to the purchasers in the private placement and has agreed to file a registration statement with the Securities and Exchange Commission (the “SEC”) registering the resale of the ordinary shares issuable upon conversion of the notes and exercise of the warrants issued in the private placement. The offer and sale of the ordinary shares underlying the warrants has not been registered under the Securities Act.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

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Source: globenewswire

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