DarioHealth (NSDQ:DRIO) announced that it closed a private placement of convertible preferred stock to institutional and private investors for proceeds of more than $21 million.
Israel-based DarioHealth said the $21.3 million in funds is earmarked for the company’s strategic plan. The plan sets out to accelerate business-to-business initiatives and support direct-to-consumer sales and marketing initiative.
Specifically, DarioHealth plans to put the proceeds toward expanding the company’s U.S. sales and marketing infrastructure. Additionally, some funds are earmarked to increase the chronic conditions addressed by the company’s digital therapeutics platform, which is designed to deliver personalized interventions driven by data analytics, software and one-on-one coaching.
The offering included participation from existing investors, new investors and affiliates of the placement agent. SternAegis Ventures acted as the exclusive placement agent. DarioHealth issued a total of 21,375 shares of convertible preferred stock at a price of $1,000 per share.
“We are excited to complete this transformative financing, which exceeded our initial funding expectations,” DarioHealth CEO Erez Raphael said in a news release. “As we continue our strategic push into the B2B channel, we believe this funding will enable us to expand our relationships with payers, employers, providers, and distributors on a much larger scale.”
“We believe that the strong investor response to this private placement is a testament to DarioHealth’s unique positioning and business strategy as well as the global demand to invest in the growth of digital health therapies,” added SternAegis Ventures CEO & Aegis Capital head of private equity banking Adam Stern.
Shares of DRIO were down -0.3% at $6.15 per share in early-morning trading today.