Israeli digital therapeutics company DarioHealth Corp. (Nasdaq: DRIO) has announced that it has closed a private placement of convertible preferred stock to institutional and private investors. The company received $21.3 million, before deducting placement agent fees and other expenses.
The capital raised from both existing and new investors will fund DarioHealth's strategic plan, which includes accelerating the company's Business-to-Business (B2B) initiatives while continuing to support direct-to-consumer (D2C) sales and marketing initiatives. The proceeds will be primarily used for the expansion of DarioHealth's US sales and marketing infrastructure that is expected to result in additional B2B contracts while also allowing further penetration of accounts already under contract. In addition, the company plans to use the funding to increase the breadth of chronic conditions addressed by DarioHealth's digital therapeutics platform, which delivers personalized, evidence-based interventions to users that are driven by precision data analytics, high quality software and one-on-one coaching. This includes supporting the ongoing launch of the digital therapeutics (DTx) platform and expansion into other large chronic disease market opportunities.
DarioHealth CEO Erez Raphael said, "We are excited to complete this transformative financing, which exceeded our initial funding expectations. 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."
SternAegis Ventures acted as the exclusive placement agent for the offering.
Published by Globes, Israel business news - en.globes.co.il - on December 23, 2019
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