DarioHealth Corp. announced on May 1, 2025, the closing of a debt financing facility for up to $50 million with Rand Capital and Callodine Group. This strategic refinancing replaces the company's existing credit facility, providing additional operational flexibility and supporting the commercial execution of its Business-to-Business-to-Consumer (B2B2C) strategy. At closing, Dario borrowed $32.5 million, with an additional $17.5 million available based on achieving certain revenue thresholds.
The new Credit Agreement has a five-year term, maturing in April 2030. A key benefit of this refinancing is the deferral of debt amortization from the end of 2025 to 2028, which is expected to allow the company more time to generate funds from operations to support its cash flow. In connection with the funding, Dario also issued a warrant to purchase 2,114,140 shares of common stock at an exercise price of $0.8278.
Erez Raphael, CEO of Dario, stated that this transaction provides the necessary flexibility to execute strategic growth initiatives and reduces near-term debt principal payments. The investment from Rand Capital and Callodine Group is viewed as a strong validation of Dario's platform and vision.
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