NEW YORK, Dec. 20, 2019 /PRNewswire/ -- DarioHealth
Corp. (Nasdaq: DRIO) ("DarioHealth" or the "Company"), a
pioneer in the global digital therapeutics market, announced today
that it has closed on a private placement of convertible preferred
stock to institutional and private investors. The Company received
aggregate gross proceeds of approximately $21.3 million, before deducting placement agent
fees and other offering expenses payable by the Company.
The capital raised from both existing and new investors will
fund DarioHealth's strategic plan, which includes accelerating the
Company's initiatives in the Business-to-Business (B2B) channel
while continuing to support our direct-to-consumer (D2C) sales and
marketing initiatives. The proceeds will be primarily used for the
expansion of DarioHealth's U.S. sales and marketing infrastructure
that is expected to result in additional B2B contracts while, at
the same time, allowing further penetration of accounts already
under contract. In addition, the Company plans to use the funding
to increase the breadth of chronic conditions addressed by
DarioHealth's digital therapeutics platform, which delivers
personalized, evidence-based interventions to users that are driven
by precision data analytics, high quality software and one-on-one
coaching. This includes supporting the ongoing launch of the
digital therapeutics (DTx) platform and expansion into other large
chronic disease market opportunities.
"We are excited to complete this transformative financing, which
exceeded our initial funding expectations," said Erez Raphael, CEO of DarioHealth. "As we
continue our strategic push into the B2B channel, we believe this
funding will enable us to expand our relationships with payers,
employers, providers, and distributors on a much larger scale."
As a part of the private placement offering, the Company issued
a total of 21,375 shares of newly designated Convertible Preferred
Stock (the "Preferred Stock"). Each share of Preferred Stock was
sold at $1,000 per share. The
Preferred Stock are convertible into shares of common stock, at the
option of the holder, subject to certain beneficial ownership
limitations, and are mandatorily convertible three years after the
respective issuance dates or upon the consent of a majority of the
holders of each respective class of Preferred Stock. The Preferred
Stock also provides for holders of Preferred Stock to receive
dividends payable in common stock on the one, two, and three-year
anniversaries of their issuance. Other material terms of the
Preferred Stock are described in the Company's Current Reports on
Form 8-K filings made with the Securities and Exchange Commission
on December 3, 2019, December 6, 2019 and December 19, 2019.
"We believe that the strong investor response to this private
placement is a testament to DarioHealth's unique positioning and
business strategy as well as the global demand to invest in the
growth of digital health therapies," added Adam Stern, CEO of SternAegis Ventures and Head
of Private Equity Banking of Aegis Capital.
SternAegis Ventures acted as the exclusive placement agent for
this offering. Participants in the offering included existing
investors, new investors and affiliates of the placement agent.
The securities described herein have not been registered under
the Securities Act of 1933, as amended, and may not be sold in
the United States absent
registration or an applicable exemption from the registration
requirements.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities in any state or other jurisdiction in which such
an offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or other jurisdiction.
About DarioHealth Corp.
DarioHealth Corp. (Nasdaq: DRIO) is a leading, global digital
therapeutics company revolutionizing the way people with chronic
conditions manage their health. By delivering evidence-based
interventions that are driven by data, high-quality software and
coaching, we empower individuals to make healthy adjustments to
their daily lifestyle choices to improve their overall health. Our
cross-functional team operates at the intersection of life
sciences, behavioral science and software technology to deliver
highly engaging therapeutic interventions. Dario is one of the
highest-rated diabetes solutions in the market, and its
user-centric MyDario™ mobile app is loved by tens of thousands of
consumers around the globe. DarioHealth is rapidly moving into new
chronic conditions and geographic markets, using a
performance-based approach to improve the health of users managing
chronic disease. To learn more about DarioHealth and its digital
health solutions, please go to: http://mydario.com/.
About SternAegis Ventures
SternAegis Ventures is the management team within Aegis Capital
Corp. that is responsible for venture capital and private equity
financing. www.sternaegis.com
Cautionary Note Regarding Forward-Looking Statements:
This news release and the statements of representatives and
partners of DarioHealth Corp. related thereto contain or may
contain forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Statements that
are not statements of historical fact may be deemed to be
forward-looking statements. Without limiting the generality of the
foregoing, words such as "plan," "project," "potential," "seek,"
"may," "will," "expect," "believe," "anticipate," "intend,"
"could," "estimate" or "continue" are intended to identify
forward-looking statements. For example, the Company is using
forward-looking statements in this press release when the Company
discusses its intended use of proceeds from the offering and the
expectation that the proceeds from the offering will drive the
breadth of chronic conditions addressed by its behavior management
application into other large chronic disease market
opportunities. Readers are cautioned that certain important
factors may affect the Company's actual results and could cause
such results to differ materially from any forward-looking
statements that may be made in this news release. Factors that may
affect the Company's results include, but are not limited to,
regulatory approvals, product demand, market acceptance, impact of
competitive products and prices, product development,
commercialization or technological difficulties, the success or
failure of negotiations and trade, legal, social and economic
risks, and the risks associated with the adequacy of existing cash
resources. Additional factors that could cause or contribute to
differences between the Company's actual results and
forward-looking statements include, but are not limited to, those
risks discussed in the Company's filings with the U.S. Securities
and Exchange Commission. Readers are cautioned that actual results
(including, without limitation, the timing for and results of the
Company's commercial and regulatory plans for Dario as described
herein) may differ significantly from those set forth in the
forward-looking statements. The Company undertakes no obligation to
publicly update any forward-looking statements, whether as a result
of new information, future events or otherwise, except as required
by applicable law.
DarioHealth Contact:
Claudia Levi
Content & Communications Manager
claudia@mydario.com
+1-347-767-4220
View original content to download
multimedia:http://www.prnewswire.com/news-releases/dariohealth-announces-closing-of-21-3-million-private-placement-300978237.html
SOURCE DarioHealth Corp.