DarioHealth (NSDQ:DRIO) said today that it closed a private placement offering with institutional and private investors, bringing in roughly $10.3 million for the Israel-based company.
As part of the private placement, DarioHealth issued 4,266,800 shares of common stock at 90¢ apiece and 1,806,923 shares of Series D convertible preferred stock at $3.60 apiece. The company also offered warrants to buy up to 9,195,604 shares of common stock at an exercise price of $1.25 per share.
The warrants will be exercisable beginning March 14 and will expire on Sept. 13, 2021, DarioHealth reported. The Series D preferred stock are automatically convertible into 7,227,692 shares of common stock at 90¢ contingent upon stockholder approval for the conversion, the company noted.
“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.” CEO Erez Raphael said in prepared remarks.
“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,” he added.
DRIO shares were trading at $1.10 apiece in morning activity today, up 1.9%.
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