DarioHealth Secures $32.5M Loan

The digital health company also issued warrants and gained equity conversion rights as part of the new agreement.

May 07, 2025

New Credit Facility Gives DarioHealth Flexible Growth Capital

On April 30, DarioHealth finalized a new five-year credit facility that gives the company immediate access to $32.5 million—and opens the door to up to $17.5 million more. The agreement, signed with Callodine Commercial Finance and other participating lenders, provides long-term capital with flexibility to scale as milestones are met.

The structure is straightforward: DarioHealth receives the first $32.5 million at closing. An additional $2.5 million becomes available if the company hits defined revenue and margin targets. A further $15 million can be drawn at the discretion of the lenders.

Secured Obligations and Performance Triggers

To secure the funding, DarioHealth pledged substantially all assets of the company and its subsidiaries. The agreement includes standard terms around default and performance, covering:

• Missed payments of principal, interest, or fees


• Breaches of covenants or representations


• Bankruptcy and insolvency events


• Material changes in leadership or control

If any of these occur, the lenders have broad authority to apply collateral toward repayment.

Loan Terms and Financial Commitments

Interest on the loan is set at the Term SOFR rate plus 7.75%. If the loan reaches maturity or is accelerated following a default, a higher rate may apply. DarioHealth also pays associated fees, including closing, agent, and exit fees. Any early repayment before the third anniversary will trigger prepayment penalties.

Equity Upside for Lenders

The deal includes equity-linked components that offer upside for lenders:

• DarioHealth will issue warrants to purchase 2,114,140 shares of common stock, priced at $0.8278 per share. These are exercisable for seven years.


• Up to $2.5 million of the loan principal, current or future, can be converted into common shares at $0.9933 per share.

Previous Facility Closed Out

The company used the proceeds to close out a prior loan agreement with Avenue Venture Opportunities Fund II. That facility, along with all associated obligations, is now fully terminated.

This new credit agreement gives DarioHealth more than just capital. It provides flexibility, future drawdown potential, and a structure that aligns with key performance milestones. It also resets the company’s financing relationships and gives it added room to execute on longer-term strategic goals. With this new facility in place, DarioHealth is positioned to move forward with expanded operational and financial capacity.