HUB Cyber Security Ltd. Enters into Agreement to Sell the QPoint Group for Approximately US $8.7 Million to the Malam Team Group

Hub Cyber Security Ltd. ("HUB" or the "Company"), today announced that it has entered into an agreement (the "Agreement") to sell 100% of the issued share capital of the QPoint Group ("QPoint") to the Malam Team Group (the "Purchaser") in consideration of approximately US $8.7 million. This divestiture is a key component of HUB’s proactive plan to strengthen its balance sheet and reduce debt. In line with the Company’s commitment to its stakeholders, the proceeds from the sale are intended to be applied toward the repayment of substantially all of the debt secured by the shares of QPoint. The QPoint Group, which includes QPoint Technologies Ltd., Aginix Engineering Ltd., QPoint Solutions Ltd., Sensecom Ltd., and Integral Telemanagement Ltd., is being sold on a cash-free and debt-free basis. The total consideration is structured as follows: Performance-Based Consideration: A payment calculated as twice the agreed-upon gross profit of QPoint for the year 2025, amounting to approximately US $4.3 million, resulting in a payment of approximately US $8.7 million. Closing Balance Sheet: The Company will deliver QPoint with a clean balance sheet, free of debt obligations and assets from HUB. Shareholder’s Equity and Net Cash: Prior to the closing, the Company will ensure that the shareholders’ equity and net cash of QPoint will be positive, net of parent company debts. Cash, net of bank credit, shall be positive or zero at closing. "This transaction represents an important milestone in our commitment to stabilizing HUB’s financial foundation," said Renah Persofsky, HUB’s Chairperson of the Board. "By monetizing this business unit, we are taking direct action to satisfy our creditor obligations. This divestiture allows us to streamline our operational footprint and focus our resources on our business restructuring." The closing is subject to customary closing conditions, including receipt of required third-party approvals and consents, as well as merger clearance by the Israel Competition Authority. To guarantee the indemnification obligations in the Agreement, portions of the consideration will be held by a third-party trustee for certain periods of time following the closing. About HUB Cyber Security Ltd. HUB Cyber Security Ltd. (Nasdaq: HUBC) has operated in confidential computing, AI-driven data fabric, and cybersecurity. HUB’s Secured Data Fabric has historically empowered organizations to virtualize, secure, and analyze sensitive data across borders and silos generating real-time intelligence while meeting the highest regulatory standards. HUB is currently implementing a comprehensive restructuring, during which its Board of Directors and management team have taken steps to improve liquidity, simplify the Company’s organizational structure, cut operating costs and strengthen corporate governance. The Board of Directors continues to explore various strategic alternatives intended to maximize value for shareholders and position HUB for future growth.