Business
DarioHealth Announces $14.3 Million Private Placement
Newly designated convertible preferred stock priced at the market under Nasdaq rules with significant participation by select members of leadership, the Board
About this update from Dariohealth Corp.
[{"type":"text","content":"Newly designated convertible preferred stock priced at the market under Nasdaq rules with significant participation by select members of leadership, the Board and existing investors\nCompany also announces refinancing of $25 million borrowed funds, saving approximately $6 million in annual amortization payments\nProforma cash balance as of the end of Q1 inclusive of the private placement funds and the refinanced loan is $60M\nNEW YORK, May 2, 2023 /PRNewswire/ -- DarioHealth Corp. (Nasdaq: DRIO) (\"Dario\" or the \"Company\"), a leader in the global digital health market, today announced the pricing of a $14.3 million private placement of convertible preferred stock, priced at the market under Nasdaq rules, with significant participation by select members of leadership, the Board and existing investors. The Company also announced the re-financing of its existing credit facility. As a result, Proforma cash balance as of the end of first quarter of 2023 inclusive of the private placement funds and refinanced loan is $60 million. Together, these actions are expected to extend the Company's cash runway through late 2025, based on its current operating plan. The private placement is expected to close on or before May 3, 2023.\n\"These actions are very positive for Dario as they provide an additional year and a half of cash runway, based on our current operating plan, at terms that I believe are very favorable to our company,\" stated Erez Raphael, Chief Executive Officer of Dario. \"We are delighted that approximately half of the newly designated convertible preferred shares, which were priced at the market under Nasdaq rules, were purchased by select members of the Company's leadership, the company's board of directors, and existing shareholders, which we view as an additional vote of confidence. Additionally, the refinancing of our existing credit facility will save approximately six million dollars annually in amortization expenses.\n\"This financing will help us to continue to execute on our long-term growth strategy, which is focused exclusively on high margin, highly scalable Business-to-Business (B2B) customer channels and allow us to maintain these positive trends in the future.\"\nPursuant to the equity offering, the Company agreed to issue shares of newly designated convertible preferred stock (the \"Preferred Stock\"). Eac...