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HUB Cybersecurity Stock (HUBC) Continues PIPE Rally

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Cyber ​​Security Hub (NASDAQ:HUBC), an Israeli cybersecurity firm, jumped 16% in trading today after climbing 21% yesterday. The rally was sparked by news, announced on March 14, that the company had “succeeded in issuing and selling 400,000 shares for $10 each.” With shares changing hands for just under $3 today, HUBC shares remain well below the price large investors have been paying this week.

In early March, HUBC shares were listed on the Nasdaq after the company merged with a Special Purpose Acquisition Company (SPAC).

Learn more about the sale of HUBC shares

Private investors bought about $4 million worth of Hub stock earlier this week. Investors bought the shares through a framework called private investment in public equity (PIPE).

Traditionally, PIPE deals are done before a company merges with a SPAC. However, part of HUB’s PIPE deal and its merger was delayed after Wolf Clovera hedge fund, reneged on its commitment to invest $10 million in the company.

More information about PIPES

On March 14, HUB announced that it remained in talks to secure additional funding from PIPE investors.

The next day, the company reported that A-Labs Consulting & Finance, an “Israeli investment bank”, still intends to invest $20 million in HUB at a price of $10 per share through a PIPE deal. The company said A-Labs has so far provided HUB with approximately $2.2 million in funding “and expects to complete the remaining funding in the near future.” ”

“A-Labs strongly believes in HUB’s potential to become one of the influential companies in the cyber arena over the next few years and is supporting its future growth plans with this funding,” Doron CohenManaging Director and CEO of ALabs said in a statement.

What investors should watch out for

Going forward, owners of HUBC stock and those interested in potentially buying the stock should keep an eye on the company’s progress in securing the remainder of its PIPE funding. And of course, they should try to assess the company’s ability to grow its cybersecurity business in the future.

As of the date of publication, Larry Ramer did not hold (either directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.

Larry Ramer has researched and written about US stocks for 15 years. He was employed by The Fly and Israel’s largest business newspaper, Globes. Larry started writing columns for InvestorPlace in 2015. Some of his highly successful contrarian picks include PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.


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