Business
DarioHealth Announces $25.6M Private Placement Positioning the Company to Execute on Strategy Aiming to Reach Operational Cash Flow Positive Run Rate by the End of 2025
Significant participation from existing shareholders and accredited healthcare investors, which the company believes underscores confidence in its
About this update from Dariohealth Corp.
[{"type":"text","content":"Significant participation from existing shareholders and accredited healthcare investors, which the company believes underscores confidence in its strategyFinancing supports execution of long-term growth initiatives focused on high-margin, scalable recurring revenues across B2B (Business-to-Business) and pharma channelsNEW YORK, Jan. 21, 2025 /PRNewswire/ -- DarioHealth Corp. (Nasdaq: DRIO) (\"Dario\" or the \"Company\"), a prominent leader in the global digital health industry, announced today the successful closing of a $25.6 million private placement of convertible preferred stock, priced in accordance with Nasdaq market rules. The majority of the funds were secured from existing shareholders, with the remainder contributed by a network of leading accredited healthcare investors and executives from the healthcare sector.\n\nThe result of this offering is expected to extend Dario's cash runway and bolster its financial position enabling the Company to continue executing its current strategic plan which includes achieving an operational cash flow positive run rate by the end of 2025 while continuing to build high-margin, scalable recurring revenues across B2B and pharma channels. As a result, the Company's proforma cash balance, inclusive of the proceeds from the private placement, is $40.6 million as of the end of the third quarter of 2024. The private placement closed on December 18, 2024, and January 14, 2025.\n\"Through the end of 2024, we demonstrated the strong execution of our multi-year strategic plan to become a profitable provider of comprehensive chronic care management solutions. Today, we are happy to announce the completion of a major milestone in this strategic plan that we believe can secure our projected operational cash flow positive run rate by the end of 2025. I believe that the ongoing cost optimization efforts following the Twill merger, coupled with steady revenue growth across multiple channels, have set us on a path to success. We are particularly pleased that more than half of the newly issued convertible preferred shares were purchased by our existing shareholders, which we believe is a strong vote of confidence in our strategy and performance. The remaining funds came from prominent accredited healthcare investors that we are thrilled to have onboard as shareholders as well,\" commented Erez Raphael,...