The Israel-based company said that current shareholders would account for 54% of the securities to be sold in the offerings, in which the company will issue 483,333 shares of common stock at $1.80 per sahre and 1.9 million shares of Series B convertible preferred stock also at $1.80.
Series B stock is convertible into shares of the company at a 1 to 1 ratio and provides for a 6% dividend payable upon conversion of the shares. DarioHealth said that holders of Series B preferred stock will not be entitled to convert into shares until the company obtains shareholder approval for the issuance.
The private placement offerings are slated to be close on or before Aug. 22, according to a press release. DarioHealth has not yet stated how it plans to spend funds raised in the round.
The approval expands the Israel-based company’s availability from exclusively Apple (NSDQ:AAPL) iOS products, which it has had clearance on since winning FDA clearance for its Dario blood glucose monitoring system in December 2015.