CAESAREA, Israel,
Sept. 14, 2018 /PRNewswire/ -- DarioHealth Corp. (NASDAQ:
DRIO), a leading global digital health company with mobile health
and big data solutions, announced today that it has closed on a
private placement offering with institutional and private investors
for the sale of shares of the Company's common stock and shares of
the Company's newly designated Series D convertible preferred
stock.
As a part of this private placement, which
raised $10,345,000 in the aggregate before expenses and
placement agent fees, the Company issued 4,266,800 shares of common
stock at a price per share of $0.90 and 1,806,923 shares
of Series D convertible preferred stock at a price per share
of $3.60, plus warrants to purchase up to an aggregate of
9,195,604 shares of common stock at an exercise price of
$1.25 per share. The warrants will be
exercisable commencing March 14, 2019
and will expire on September 13,
2021. The Series D preferred stock are automatically
convertible into an aggregate of 7,227,692 shares of common stock
based on a conversion price of $0.90
per share upon stockholder approval for the conversion. The Company
has agreed to file a registration statement covering the resale of
the shares of common stock sold in the offering, the shares of
common stock issuable upon conversion of the Series D preferred
stock, and the warrant shares, within 60 days following the closing
of the offering.
The private placement was managed by the Company with the
assistance of A.G.P./Alliance Global Partners, which acted as the
placement agent for a portion of the offering.
"With 14 consecutive quarters of increasing revenues, 84%
year-over-year revenue growth from 2016 to 2017, and expected gross
margin improvement from service and business-to-business revenues,
DarioHealth is on a path of accelerated growth towards
profitability. We believe we have a very strong technology and
service offering in digital health which improves patient outcomes
while creating significant savings for payers. We are very pleased
to see a large proportion of this private investment round coming
from new institutional, VCs and private investors who are
healthcare focused and understand the tremendous opportunity that
DarioHealth is executing upon," stated Erez
Raphael, Chief Executive Officer of DarioHealth.
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 securities, nor shall there be any
sale of these securities in any state or other jurisdiction in
which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction.
About DarioHealth Corp.
DarioHealth Corp. (NASDAQ: DRIO) is a leading global digital
health company serving its users with dynamic mobile health
solutions. In today's day and age, knowledge of health and
treatment is being democratized, and we believe people deserve to
know everything about their own health and have the best tools to
manage their condition. DarioHealth employs a revolutionary
approach whereby harnessing big data, we have developed a novel
method for chronic disease data management, empowering people to
analyze and personalize self-diabetes management in a totally new
way without having the disease slow them down. DarioHealth has a
commercial office in New York with
an R&D center in Caesarea,
Israel. For more information, visit
http://mydario.investorroom.com/.
Cautionary Note Regarding Forward-Looking Statements
This news release and the statements of representatives and
partners of DarioHealth Corp. (the "Company") 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, when the Company describes
the use of proceeds from the offering, the Company's growth towards
profitability, and the Company's opportunities, it is using
forward-looking statements. 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™) 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 Corporate Contact: Joao Mendes-Roter, VP Marketing,
joao@mydario.com, 1-914-775-5548
DarioHealth Investor Relations Contact: Westwicke
Partners, Dario@Westwicke.com, 1-443-213-0500
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SOURCE DarioHealth Corp.