LabStyle goes to NASDAQ; Raise $8.5 Million

7 March, 2016

LabStyle from Caesarea, Israel, has developed the Dario Blood Glucose Monitoring System for the quantitative measurement of glucose

LabStyle from Caesarea, Israel, has developed the Dario Blood Glucose Monitoring System for the quantitative measurement of glucose

LABSTYLE

LabStyle Innovations received approval to list its common stock and warrants on the NASDAQ Capital Market effective March 4, 2016, and will trade under the symbols DRIO and DRIOW, respectively.

The Company also announced the pricing of a firm commitment underwritten public offering of shares and warrants for an approximate aggregate gross amount of $6.0 million as well as a concurrent private placement of common stock and warrants for an approximately $2.5 million.

The aggregate gross proceeds to LabStyle from the public offering and private placement are expected to be $8.5 million. LabStyle intends to use the net proceeds from the public offering and private placement for increasing manufacturing capacity, further development of its software platform, sales and marketing efforts to penetrate the U.S. market and other markets.

The Company also effected a 1-for-18 reverse stock split of its issued and outstanding shares of common stock and the offering price reflects such stock split. The reverse split, before giving effect to the offering and private placement, reduces the number of  LabStyle’s issued and outstanding shares of common stock from approximately 54 million to approximately 3 million.

LabStyle from Caesarea, Israel, has developed the Dario Blood Glucose Monitoring System for the quantitative measurement of glucose (sugar) in fresh capillary whole blood. The Dario is intended for self-testing outside the body (in vitro diagnostic use) by people with diabetes at home to monitor the effectiveness of diabetes control.

The system consists of a device housing that includes a blood glucose meter and lancing device. The system also includes test strips, lancets, control solutions and a mobile application. The Dario meter does not require coding or separate batteries. It is powered via the 3.5mm audio headphone jack of the smart mobile device.

Users are instructed to insert the test strip into the meter, apply the blood or control solution to the test strip, after which the meter will process the test in approximately six (6) seconds and display the test result on the smart mobile device screen via the mobile application.

The Dario Blood Glucose Monitoring System uses Apple’s iOS smart mobile device technology to view the glucose test results via a mobile application. This application is available for download via the smart mobile device’s application store.

Dario received U.S. FDA clearance in December 2015 and received Europe’s CE mark certification in September 2013. World rollout began in select countries in December 2013.

abStyle’s revenues for 2015 amounted to approximately $823,000 compared to approximately $51,000 in 2014. Fourth quarter revenues for 2015 amounted to approximately $308,000 compared to approximately $273,000 in the third quarter of 2015.

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