Dear Reddit brain
I’ve been thinking about the impact reducing debt could have on increasing a company's market value. For over the past year I’ve been following (and have a small position in) Hub Security. The company had a rough start on Nasdaq but has since undergone significant changes.
Tbh for a while in 2023 I thought they might outright fold, but Hub Security has shown signs of new life since major C-level changes and a stream of strategic acquisitions. They’ve been doing the rounds in conferences, and recently announced a significant debt settlement in progress.
Here’s the numbers and my question for y’all:
1) Market cap: ~$8M
2) As reported on June 2023, the company's debt is $28.65M
3) A couple of days ago, Bloomberg reported that the company is in the process of settlement with Oppenheimer for $12M of listing fees (that’s %41.8 of the total last reported debt). The article doesn't specifically mention the settlement's details, but it could be very bullish, “Oppenheimer said that its written agreement with Hub entitled it to be paid 1% of the transaction value upon the closing of the transaction, plus its expenses.”
4) Today, the company released PR approving the affirming that a settlement is in the works with Oppenheimer.
My Question: If the settlement finalizes, will reducing a major chunk of its debt trigger bullish price movement ?
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