DarioHealth Announces $28.6 Million Private Placement

DarioHealth, the developer of app-connected blood glucose monitoring system, closed a private placement of $28.6 million from accredited investors, including healthcare funds and institutions from the U.S. and Israel.

The company placed a total of 38,25,441 shares at $7.4 per share.

The private placement was subscribed by the company’s existing shareholder, Nantahala Capital Management (on behalf of client funds and accounts). It was also joined by new investors, including funds managed by Manchester Management Company, Soleus Capital Management, and Israeli institutional investors, including Phoenix insurance, Mor provident fund, Psagot investment house.

SternAegis Ventures acted as the exclusive placement agent for this offering. Rosario Capital acted as a financial advisor in Israel.

“The adoption rate of digital therapeutics has been accelerated by the current pandemic. Dario’s efficient, value-oriented solution is well-positioned to compete in this largely untapped U.S. market, said Erez Raphael, CEO of Dario.”

The New York-based digital therapeutics company has raised almost $100 million to date, through multiple private share placements.

Last year, DarioHealth raised $21.37 million, through a private placement common stock, which was subscribed by affiliates of the placement agent SternAegis Ventures, a corporate venture arm of Aegis Capital.

“We are pleased to have the confidence of our largest shareholder and several new highly regarded healthcare investors as we expand our commercial to manage existing and anticipated near-term agreements with healthcare payers,” said Erez Raphael in a supporting statement.

The oversubscribed funds will be used to fund the company’s long term strategic operating plan, as it expands its focus from the direct-to-consumer channel to the business-to-business-to-consumer channel. The proceeds will also be used to further build-out the commercial infrastructure, as the company is securing contracts from health plans, self-insured employers, and providers, the company said in a statement.

Image Credit: DarioHealth