TEL AVIV, Israel, Feb. 1, 2022 /PRNewswire/ -- HUB Security Ltd. (TASE: HUB.TA) (HUB) a confidential computing company, announced today that it signed a letter of intent (LOI) with a NASDAQ-listed special purpose acquisition company (SPAC) for a potential merger transaction. HUB takes a unique, integrated software and hardware approach to cybersecurity and provides computing appliances and professional services to commercial and government organizations in over 30 countries. The company's leadership hopes the NASDAQ listing will give HUB further credibility in the U.S. market. 

"This is a logical next step for HUB as part of our rapid growth trajectory," said Eyal Moshe, Co-founder & CEO of HUB. "We have grown significantly over the past 12 months and gained major U.S. corporate and government clients. Being listed on the NASDAQ will provide us with the credibility and transparency necessary for penetrating into the Fortune 500 arena."

The SPAC holds over $150 million in cash, and under the terms of LOI, the SPAC and HUB will jointly raise additional capital via a private investment in public equity (PIPE) subscription. Upon completion of the merger transaction, HUB shareholders' position in the new company will be between 75% and 90%, assuming that the final value determined for the company in the merger transaction does not change. The legal structure of the new entity and its estimated value may vary, depending on the agreements between the parties, the securities laws of Israel and the USA, and the possible tax implications of any such merger. In the event that the expected net-cash balance in the merged company may be less than $100 million (following the possible redemption of trust funds in the SPAC and including the potential PIPE funds), HUB has the right to terminate the LOI and withdraw from the proposed merger.

About HUB Security
HUB Security was established in 2017 by veterans of the 8200 and 81 elite intelligence units of the Israeli Defense Forces. The company specializes in unique Cyber Security solutions protecting sensitive commercial and government information. The company debuted an advanced encrypted computing solution aimed at preventing hostile intrusions at the hardware level while introducing a novel set of data theft prevention solutions. HUB operates in over 30 countries and provides innovative cybersecurity computing appliances as well as a wide range of cybersecurity professional services worldwide.

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SOURCE Hub Security