DarioHealth Announces 20-to-1 Reverse Stock Split to Begin Trading August 28.

DarioHealth Corp., a digital health company, will implement a 20-to-1 reverse stock split on August 28, 2025. The company's common stock will begin trading on the Nasdaq Capital Market under a new CUSIP number, DRIO, after the split. The reverse stock split is expected to improve the company's financial stability and increase investor confidence.

DarioHealth Corp. (DRIO), a leading digital health company, has announced a 20-to-1 reverse stock split, scheduled to take effect on August 28, 2025. The move is expected to stabilize the company's financial position and enhance investor confidence. The reverse stock split will reduce the number of outstanding shares from approximately 47.996 million to around 2.399 million, while the company's authorized shares will remain unchanged at 400 million.

The reverse stock split will have no impact on the number of authorized shares or the par value of the common stock. Each 20 shares of common stock will be combined into one share, resulting in a new CUSIP number (23725P308) for the company's common stock. This adjustment will not change the voting rights or dividend distribution rights of shareholders. The reverse stock split was approved by the company's board of directors and is expected to improve the company's liquidity and institutional appeal [1].

DarioHealth's reverse stock split is part of a broader trend among growth-stage companies aiming to meet Nasdaq listing requirements and attract institutional investors. Similar actions have been taken by peers such as Nano Dimension and Cellect Biotechnology in recent years [2]. While reverse stock splits can simplify capital structures and reduce administrative costs, they also introduce new risks related to liquidity and volatility.

The company's digital health platform offers personalized and dynamic interventions for various chronic conditions, including diabetes, hypertension, and behavioral health. The reverse stock split is expected to signal the company's commitment to financial stability and long-term growth, rather than desperation. However, the success of the move will ultimately depend on the company's ability to deliver on its digital health vision and maintain investor confidence.

References:
[1] https://www.ainvest.com/news/dariohealth-20-1-reverse-stock-split-strategic-move-stabilize-attract-institutional-investment-2508/
[2] https://www.prnewswire.com/il/news-releases/dariohealth-announces-20-to-1-reverse-stock-split-302537519.html