HUB Cyber Security Ltd. announced that it has issued non-convertible note for gross proceeds of $2 million on June 27, 2024. The company also issued warrants pursuant to a securities purchase agreement entered into with the investor. The loan amount under the Notes is repayable by the company on the earlier of September 24, 2024, or five business days following the closing of a financing.

The Notes carries a variable interest rate based on the date of repayment as follows: (i) for the principal amount repaid on or prior to September 24, 2024, 10%, and (ii) for the principal amount repaid following September 24, 2024, 10% of such principal amount plus 15% per annum, on the basis of the actual number of days elapsed commencing from the date following September 24, 2024 and ending on the repayment date. The notes carriers warrants (i) warrants exercisable into 1,000,000 Ordinary Shares are exercisable at an exercise price equal to $0.50 per share until June 26, 2027 and (ii) warrants exercisable into 2,000,000 Ordinary Shares are exercisable at an exercise price equal to $0.70 per share until June 26, 2027. The conversion of the Notes and the exercise of the Warrants will be limited to the extent that, upon the conversion or exercise, the Investor and its affiliates would in aggregate beneficially own more than 4.99% of the Ordinary Shares.