Israeli digital health company DarioHealth, known for its creation of a cloud-based diabetes monitoring device, announced it has closed a private placement offering of $21.3 million this month.
As part of the offering, the company issued 21,375 shares of convertible preferred stock, at $1,000 a share, to institutional and private investors.
SternAegis Ventures, the venture capital arm of US financial services company Aegis Capital Corporation, acted as the exclusive placement agent for this offering.
Participants in the offering included existing investors, new investors and affiliates of the placement agent.
The capital raised will “fund DarioHealth’s strategic plan,” the company said in a statement. This includes accelerating the firm’s initiatives in the business-to-business channel while continuing to support direct-to-consumer sales and marketing initiatives.
“We are excited to complete this transformative financing, which exceeded our initial funding expectations,” said Erez Raphael, CEO of DarioHealth. “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.”
The capital will also be used to expand DarioHealth’s US sales and marketing infrastructure and increase “the breadth of chronic conditions addressed by DarioHealth’s digital therapeutics platform.”
“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 Adam Stern, CEO of SternAegis Ventures and head of private equity banking of Aegis Capital.
Founded in 2011, DarioHealth has developed a diabetes monitoring device that enables users to test and track their blood-glucose levels in real-time with a smartphone. The device is the size of the user’s palm and offers safety features like emergency hypo alerts through text messages, which include the user’s location. The device has been approved in the US, Europe, Australia and Canada.
It is based in the coastal Israeli town of Caesarea and has additional offices in New York.