LabStyle Innovations Closes $2.5 Million Funding to Support Global Rollout of Dario Diabetes Management Solution
Investors include company officers, employees, friends & family; Participating high net worth private investors include current shareholders and a new investment by Shmuel Farhi
Aug 31, 2015
CAESAREA, Israel, Aug. 31, 2015 /PRNewswire/ -- LabStyle Innovations Corp. (OTCQB: DRIO), developer of the Dario™ Diabetes Management Solution, today announced it recently closed a round of funding totaling approximately $2.5 million. Funds will be used to support the global rollout and initial U.S. commercial launch of the Dario, a mobile, cloud-based, diabetes management solution that includes novel software applications combined with a stylish, 'all-in-one,' pocket-sized, blood glucose monitoring device, and for working capital purposes. The Dario recently launched in Canada with reimbursement through a majority of medical plans and the U.S. Food and Drug Administration's clearance is anticipated in the coming months.
"Our entire team here at LabStyle is very excited about where we are in the Company's growth cycle and we, along with our friends and family, are making personal investments in the future of LabStyle and the Dario," stated Erez Raphael, LabStyle's Chairman and Chief Executive Officer.
"Shmuel Farhi, a prominent Canadian investor, was a major contributor in this round of funding. LabStyle benefits from the support of investors like Mr. Farhi, as well as our other shareholders who have displayed their loyalty to the Company by making repeat investments in this and prior rounds of funding," Mr. Raphael added.
Mr. Farhi commented, "LabStyle has the ability to transform the treatment of disease through mobile solutions. Both mHealth and the diabetes monitoring and treatment markets are multi-billion dollar industries that will continue to grow in nearly every global market. We believe LabStyle has the right technology and management team to execute on a huge opportunity."
"Our second quarter financial performance shows that we are generating market traction. We will use the proceeds of this fund raise for our anticipated market launch in the U.S., as well continued market penetration in numerous other countries," Erez concluded.
Funding terms included a purchase price per unit of $0.30. Each unit comprised of one share of LayStyle's common stock and two warrants to purchase common stock. Each warrant entitles the investor to purchase 0.5 share of common stock, one at an exercise price of $0.35 per share exercisable during a twelve months term and the other at a purchase price of $0.40 per share exercisable during a three year term.
About LabStyle Innovations
LabStyle Innovations Corp. (OTCQB: DRIO) develops and commercializes patent-pending technology providing consumers with laboratory-testing capabilities using smart mobile devices. LabStyle's flagship product is the Dario™ personalized smart meter. Dario™ received CE mark certification in September 2013 and began a world rollout in select countries in December 2013. LabStyle filed a Premarket Notification Application, also known as a 510(k), with the US Food and Drug Administration (FDA) for the Dario™ smart meter (Dario™ Blood Glucose Monitoring System) in December 2013. LabStyle is pursuing patent applications in multiple areas covering the specific processes related to blood glucose level measurement as well as more general methods of rapid tests of body fluids using mobile devices and cloud-based services. For more information, the content of which is not part of this press release,: www.mydario.com and http://mydario.investorroom.com.
Cautionary Note Regarding Forward-Looking Statements
This press release and the statements of representatives and partners of LabStyle Innovations Corp. (the "Company") related thereto contains 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. 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. For example, forward-looking statements are used in this press release when the Company describes the expected use of proceeds from the recent round of funding, or when the market potential of the Dario is being discussed, or when it is discussed that the Company has the right technology and management team to execute on a huge opportunity. 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.
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SOURCE LabStyle Innovations Corp.