DarioHealth Announces Closing of $21.3 Million Private Placement

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Dec 20, 2019, 08:30 ET

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
[email protected]
+1-347-767-4220

SOURCE DarioHealth Corp.