Obalon Strengthens Balance Sheet By Raising Additional Capital And Reducing Debt
July 10 2019 - 8:30AM
Obalon Therapeutics, Inc. (NASDAQ:OBLN), a vertically integrated
medical technology company with the first and only FDA-approved
swallowable, gas-filled intragastric balloon system for the
treatment of obesity, announces that it has reduced its
outstanding debt under a facility with Pacific Western Bank from
$20 million to $5 million. The reduction in debt is expected to
lower the Company’s annual interest expense burden from
approximately $1.4 million to approximately $350,000.
Throughout the second quarter of 2019, Obalon raised
approximately $8.8 million in gross proceeds through a series of
financings including a registered direct equity offering with
A.G.P./Alliance Global Partners acting as our financial advisor,
the sale of common stock through its equity line of credit with
Lincoln Park Capital and an at-the-market (ATM) equity offering
through Canaccord Genuity acting as sales agent.
“We are pleased to have been able to utilize our multi-pronged
approach to raise capital and improve our balance sheet,” said
William J. Plovanic, President and Chief Financial Officer of
Obalon. “We are now focused on driving new strategic initiatives
that can more efficiently convert consumer interest in our novel
FDA-approved treatment for obesity into patient treatments,
including developing a network of company-owned or managed
Obalon-branded retail centers. We expect to be able to provide more
detail on our revised commercial strategy in the coming weeks.”
About Obalon Therapeutics, Inc. Obalon
Therapeutics, Inc. (NASDAQ:OBLN) is a San Diego-based company
focused on developing and commercializing novel technologies for
weight loss. For more information, please
visit www.obalon.com.
Forward-Looking StatementsTo the extent that
statements contained in this press release are not descriptions of
historical facts regarding Obalon Therapeutics, they are
forward-looking statements reflecting the current beliefs and
expectations of management made pursuant to the safe harbor of the
Private Securities Reform Act of 1995. Such forward-looking
statements involve substantial risks and uncertainties that could
cause Obalon Therapeutics' future results, performance or
achievements to differ significantly from those expressed or
implied by the forward-looking statements. Obalon Therapeutics
undertakes no obligation to update or revise any forward-looking
statements. For a description of the risks and uncertainties that
could cause actual results to differ from those expressed in these
forward-looking statements, as well as risks relating to Obalon
Therapeutics' business in general, please refer to Obalon
Therapeutics’ current report on Form 8-K filed with the Securities
and Exchange Commission on June 24, 2019, and its future periodic
reports filed with the Securities and Exchange Commission.
For Obalon Therapeutics, Inc.
Investor Contact:William PlovanicPresident & Chief Financial
OfficerObalon Therapeutics, Inc.Office: +1 760 607
5103wplovanic@obalon.com
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