DarioHealth Corp. announced on January 21, 2025, the successful closing of a $25.6 million private placement of convertible preferred stock. The majority of the funds were secured from existing shareholders, with additional contributions from accredited healthcare investors and executives. This financing is expected to extend Dario's cash runway and strengthen its financial position.
The private placement brings the company's proforma cash balance to $40.6 million as of the end of the third quarter of 2024, including the proceeds. This capital infusion is intended to support the execution of Dario's strategic plan, which includes achieving an operational cash flow positive run rate by the end of 2025. The company aims to continue building high-margin, scalable recurring revenues across its B2B and pharma channels.
The transaction involved the issuance of convertible preferred stock, with conversion prices of $0.73 and $0.83 per share. These preferred shares include a 10% dividend payable in common stock quarterly for the first four quarters, totaling up to 40%.
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