DarioHealth Closes Strategic Refinancing of Existing Debt Facility of up to $50 Million to Provide Additional Operational Flexibility and Support Growth Initiatives
DarioHealth Closes Strategic Refinancing of Existing Debt Facility of up to $50 Million to Provide Additional Operational Flexibility and Support Growth Initiatives |
| [01-May-2025] |
NEW YORK, May 1, 2025 /PRNewswire/ -- DarioHealth Corp. (NASDAQ: DRIO) ("Dario" or the "Company"), a leading global digital health company, today announced the closing of a debt financing facility for up to $50 million provided by Rand Capital and Callodine Group. The capital refinances the Company's existing credit facility, providing additional operational flexibility and supporting the commercial execution of its Business-to-Business-to-Consumer ("B2B2C") strategy across pharmaceutical companies, self-insured employers and payer channels.  Under the terms of the credit agreement (the "Credit Agreement"), the Company borrowed $32.5 million at closing. In addition, an aggregate of up to an additional $17.5 million is available to be drawn down at the Company's option, based on the achievement of certain revenue thresholds. The Credit Agreement has a five-year term that matures in April 2030. In connection with the funding of the closing amount, the Company also issued a warrant to purchase 2,114,140 shares of the Company's common stock, with an exercise price of $0.8278. In addition, up to $2.5 million of the loaned amount can be converted into shares of the Company's common stock at a price of $0.9933 per share. With the refinancing and current cash on hand, the Company believes that deferring the debt amortization from the end of 2025 to 2028 will allow the time to generate funds from operations to support the Company's cash flow. "We are excited to partner with Rand Capital and Callodine Group," said Erez Raphael, Chief Executive Officer of Dario. "This transaction provides us with the needed flexibility to execute upon our strategic growth initiatives. This financing reduces our near-term need for debt principal payments under our previous credit agreement. Given the Rand Capital and Callodine Group investment teams' history of successfully funding innovative healthcare companies with credit solutions, we view this as a strong validation of our platform and vision." Winston Black, General Partner of Rand Capital, added, "We are excited to support Dario as they commercialize what we believe is one of the most comprehensive, integrated, hyper-personalized chronic care management platforms on the market today. Dario is addressing a multi-billion-dollar market opportunity to empower users with tools that produce better care at lower cost to the health system, as they improve management of expensive chronic diseases in between physician visits." Dario was represented in this transaction by Sullivan & Worcester LLP who served as legal counsel. Rand Capital and Callodine Group were represented in this transaction by Holland & Knight LLP, who served as legal counsel. About DarioHealth Corp. DarioHealth Corp. (Nasdaq: DRIO) is a leading digital health company revolutionizing how people with chronic conditions manage their health through a user-centric, multi-chronic condition digital therapeutics platform. Dario's platform and suite of solutions deliver personalized and dynamic interventions driven by data analytics and one-on-one coaching for diabetes, hypertension, weight management, musculoskeletal pain, and behavioral health. Dario provides its highly user-rated solutions globally to health plans and other payers, self-insured employers, providers of care, and consumers. To learn more about Dario and its digital health solutions, or for more information, visit http://dariohealth.com. Cautionary Note Regarding Forward-Looking Statements This news release and the statements of representatives and partners of DarioHealth Corp. related thereto contain or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not statements of historical fact may be deemed to be forward-looking statements. For example, the Company is using forward-looking statements in this press release when it discusses the potential benefits of the Credit Agreement, including that the funds will be used to support the execution of its business plan and fuel continued growth, the potential for an additional draw down of $17.5 million at the Company's option, based on the achievement of certain revenue thresholds, that the proceeds from the Credit Agreement and current cash on hand, it expects to have the time to generate funds from operations to support the Company's cash flow; that the transaction will provide the Company with the needed flexibility to execute its strategic growth initiatives; and that the Company is addressing a multi-billion-dollar market opportunity. Without limiting the generality of the foregoing, words such as "plan," "project," "potential," "seek," "may," "will," "expect," "believe," "anticipate," "intend," "could," "estimate" or "continue" are intended to identify forward-looking statements. Readers are cautioned that certain important factors may affect the Company's actual results and could cause such results to differ materially from any forward-looking statements that may be made in this news release. Factors that may affect the Company's results include, but are not limited to, regulatory approvals, product demand, market acceptance, impact of competitive products and prices, product development, commercialization or technological difficulties, the success or failure of negotiations and trade, legal, social and economic risks, and the risks associated with the adequacy of existing cash resources. Additional factors that could cause or contribute to differences between the Company's actual results and forward-looking statements include, but are not limited to, those risks discussed in the Company's filings with the U.S. Securities and Exchange Commission. Readers are cautioned that actual results (including, without limitation, the timing for and results of the Company's commercial and regulatory plans for Dario™ as described herein) may differ significantly from those set forth in the forward-looking statements. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. DarioHealth Corporate Contact DarioHealth Investor Relations Contact Logo - https://mma.prnewswire.com/media/1920436/DarioHealth_Logo.jpg SOURCE DarioHealth Corp. | ||
Company Codes: Stuttgart:LS1P, NASDAQ-SMALL:DRIO, Munich:LS1P, Berlin:LS1P |
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