Diabetes app developer DarioHealth closes $5m private placements

Digital health company DarioHealth (NSDQ:DRIO) said today that it closed a $5 million private placement with new and existing investors for shares of the company’s common stock and shares of the company’s Series B convertible preferred stock.

The Israel-based company said current shareholders accounted for 58% of the securities sold in the offerings.

DarioHealth issued 483,333 shares of common stock at $1.80 apiece and 2.3 million shares of Series B convertible preferred stock at the same price. The Series B preferred stock is covertible into shares of common stock at a 1:1 ratio and provides for a 6% dividend payable upon conversion of the preferred shares, the company said.

“We are very excited with our continued revenue growth trajectory and are confident that our recent Android clearance by the FDA will enable us to accelerate our growth,” chairman & CEO Erez Raphael said in prepared remarks. “This additional capital, mainly from existing shareholders and a few long-term fundamental investors that have been monitoring our progress for a few quarters, gives us the extra runway to execute on our strategy to ramp users and reduce our cash burn through the end of 2018. We appreciate the continued support of our existing shareholders and the confidence and trust from our new shareholders.”

In July, the company won FDA 510(k) approval for its Dario diabetes management application on certain Google (NSDQ:GOOG) Android devices.

The approval expands the company’s availability from exclusively Apple (NSDQ:AAPL) iOS products. DarioHealth’s blood glucose monitoring system won FDA clearance in December 2015.

DRIO shares were trading at $2.10 apiece in mid-morning activity today, up +8.6%.

See the best minds in medtech live at DeviceTalks Boston on Oct. 2. 

The post Diabetes app developer DarioHealth closes $5m private placements appeared first on MassDevice.

from MassDevice http://ift.tt/2g5tJcu