DarioHealth Closes on $10,345,000 Through Private Placement Offering

- Funds expected to drive Company's accelerated growth towards profitability

- Investments from healthcare focused institutions, Venture Capital funds, high-net worth investors and current shareholders

News provided by

DarioHealth Corp.

Sep 14, 2018, 08:00 ET

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, [email protected], 1-914-775-5548

DarioHealth Investor Relations Contact: Westwicke Partners, [email protected], 1-443-213-0500

SOURCE DarioHealth Corp.