LabStyle Innovations Implements 1-For-5 Reverse Stock Split

CAESAREA, Israel, Oct. 6, 2014 /PRNewswire/ -- LabStyle Innovations Corp. (OTCQB: DRIO), developer of the Dario Diabetes Management Solution, today announced that effective at 9:00 a.m. eastern standard time on October 6, 2014, the company will implement a 1-for-5 reverse stock split of the company’s common stock.

The reverse split was approved by LabStyle’s board of directors under authority granted by the company’s stockholders at LabStyle’s 2014 Annual Meeting of Stockholders held on June 17, 2014. The company originally announced its intention to implement the reverse split in a press release dated September 23, 2014. Stockholders will not need to take any action with respect to the reverse stock split.

The reverse stock split will have the effect of reducing the number of issued and outstanding shares of common stock from approximately 79.5 million shares pre-reverse stock split to approximately 15.9 million shares post-reverse stock split. The common stock is also expected to begin trading on a post-reverse stock split basis on the OTCQB on October 6, 2014. LabStyle’s common stock will trade for 20 days on a post-split basis under the temporary symbol “DRIOD,” with the “D” added to signify that the reverse stock split has occurred.

As a result of the reverse stock split, every 5 of LabStyle’s issued and outstanding shares of common stock will be automatically converted into 1 share of common stock. The shares of common stock underlying LabStyle’s outstanding preferred stock and warrants will be similarly adjusted. Any fractional shares resulting from the reverse stock split will be rounded up to the nearest whole share. The amount of authorized common stock (80 million shares), as well as the par value for the common stock, will not be effected.

A new CUSIP number of 50544T203 will replace the pre-reverse stock split CUSIP number of 50544T104 to distinguish between the pre and post-reverse stock split shares of common stock.

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 Diabetes Management Solution. 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 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.

Cautionary Note Regarding Forward-Looking Statements

This news release and the statements of representatives and partners of LabStyle Innovations Corp. (the “Company”) related thereto contains or may contain 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. 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 public stock price or the Company’s common stock following the reverse split described herein) may differ significantly from those set forth or implied 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.

Dario and the Dario logo are trademarks owned by LabStyle Innovation Ltd.

© 2014 LabStyle Innovations Corp. All rights reserved.

SOURCE LabStyle Innovations Corp.