DarioHealth Announces $25.6M Private Placement Positioning the Company to Execute on Strategy Aiming to Reach Operational Cash Flow Positive Run Rate by the End of 2025

Core Viewpoint - DarioHealth Corp. successfully closed a $25.6 million private placement of convertible preferred stock, primarily funded by existing shareholders, aimed at extending its cash runway and supporting its strategic plan to achieve operational cash flow positivity by the end of 2025 [1][2][3] Financial Position - The private placement is expected to enhance Dario's financial position, with a proforma cash balance of$40.6 million as of the end of Q3 2024, including the proceeds from the offering [2] - The financing will enable the company to continue building high-margin, scalable recurring revenues across B2B and pharma channels [4][9] Transaction Details - The company issued 18,805 shares of convertible preferred stock at $1,000 per share with a conversion price of$0.73, and 6,800 shares at $1,000 per share with a conversion price of$0.83 [5] - Holders of the preferred stock will receive a 10% dividend payable in common stock each quarter for the first four quarters, totaling up to 40% [6] Shareholder Confidence - More than half of the newly issued convertible preferred shares were purchased by existing shareholders, indicating strong confidence in the company's strategy and performance [3][9] - The participation of accredited healthcare investors further underscores this confidence [9] Strategic Growth - The financing is aligned with the company's long-term growth strategy focused on high-margin, scalable recurring revenues [4][9] - The company aims to maintain its growth trajectory and strengthen its position in the digital health market [4]