#United States #New York #digital health #funding #DarioHealth

DarioHealth Secures $25.6 Million in Funding to Propel Digital Health Initiatives

DarioHealth Corp., a prominent player in the digital health landscape, has successfully closed a $25.6 million private placement of convertible preferred stock. This funding, crucial for its strategic objectives, aims to establish a pathway to operational cash flow positivity by the close of 2025. With an emphasis on high-margin, scalable recurring revenue streams, DarioHealth focuses on expanding its Business-to-Business (B2B) and pharmaceutical channels.

In a significant display of confidence in the company’s strategic direction, the majority of the funding came from existing shareholders, supplemented by a network of accredited healthcare investors. As of the end of 2024, thanks to this private placement, Dario’s cash reserves surged to $40.6 million, strengthening its financial stability.

CEO Erez Raphael expressed optimism about this milestone, highlighting that the effective execution of their long-term strategic plan has positioned DarioHealth strongly in the market. He emphasized that cost optimization efforts following their merger with Twill and a steady growth trajectory have collectively laid the groundwork for future successes.

Steven Nelson, Chief Commercial Officer, echoed these sentiments, stating that the new financing will facilitate the company’s high-margin growth strategy, enhancing its capabilities in both B2B and pharma channels.

Transaction Highlights

As part of the equity offering, DarioHealth issued newly designated convertible preferred stock, selling a total of 18,805 shares at $1,000 each with a $0.73 conversion price, alongside 6,800 shares at the same price with a conversion price of $0.83. Notably, these preferred stocks will yield a 10% quarterly dividend in common stock for the initial four quarters, culminating in a potential 40% total stock dividend.

The company assured its investors that these securities have not been registered under the Securities Act of 1933, making it essential to adhere to terms that govern sales and offers in various jurisdictions.

About DarioHealth Corp.

DarioHealth Corp. is revolutionizing chronic care management with a user-centric digital therapeutics platform tailored to various health issues like diabetes, hypertension, and behavioral health. By breaking away from traditional episodic care, DarioHealth provides continuous, customized interventions that empower users towards effective health management, leading to improved satisfaction and results. Its services are utilized globally by health plans, employers, and health providers, marking DarioHealth as a standout in the digital health industry.

Future Outlook

Looking ahead, DarioHealth remains committed to its mission of reshaping healthcare by leveraging technology and user engagement, with the ultimate goal of achieving operational productivity and profitability by the end of 2025. This latest investment is not just a financial boost but a testament to the confidence shared by stakeholders in DarioHealth’s vision and operational strategy.