DarioHealth Corp. (NASDAQ: DRIO) has 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 strategy across pharmaceutical companies, self-insured employers, and payer channels.
Under the terms of the credit agreement, the company borrowed $32.5 million at closing. 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 agreement has a five-year term that matures in April 2030.
In connection with the funding, DarioHealth issued a warrant to purchase 2,114,140 shares of the company’s common stock, with an exercise price of $0.8278. Additionally, 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.
“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,” said Erez Raphael, Chief Executive Officer of DarioHealth.
