Obalon Therapeutics Inc. Announces Pricing of $15,000,000 Public Offering
August 02 2019 - 8:48AM
Obalon Therapeutics Inc. (Nasdaq: OBLN) (the
“Company”), a vertically integrated medical technology
company with the first and only FDA-approved swallowable,
gas-filled intragastric balloon system for the treatment of
obesity, today announced the pricing of an underwritten public
offering of (i) 2,015,000 shares of common stock together with
common stock warrants (the “common warrants”) to purchase 1,511,250
shares of common stock and (ii) 1,735,000 pre-funded warrants, with
each pre-funded warrant exercisable for one share of common stock,
together with common warrants to purchase 1,301,250 shares of
common stock. The shares of common stock (or pre-funded warrants,
as applicable) and accompanying common warrants are being sold
together at a combined public offering price of $4.00 per share.
The pre-funded warrants are immediately exercisable and may be
exercised at any time until all of the pre-funded warrants are
exercised in full. The common warrants will have an exercise price
of $4.40 per share, will be immediately exercisable and will expire
five years from the date of issuance. The Company has granted the
underwriters a 45-day option to purchase up to an additional
562,500 shares of common stock and/or 421,875 common warrants to
cover over-allotments, if any.
The gross offering proceeds to the Company from
the offering, before deducting the underwriting discounts and
commissions and other estimated offering expenses, and excluding
the exercise of any warrants and the underwriters’ option to
purchase additional shares, are expected to be approximately
$15,000,000. The offering is expected to close on or about August
6, 2019, subject to customary closing conditions.
The Company intends to use the net proceeds from
this offering to launch its transition to company-owned or managed
Obalon-branded retail centers, and for general corporate
purposes.
A.G.P./Alliance Global Partners is acting as
sole book-running manager for the offering.
A registration statement on Form S-1 (No.
333-232276) relating to the offering was filed with the Securities
and Exchange Commission (“SEC”) and was declared effective on
August 1, 2019. The offering is being made only by means of a
prospectus. A copy of the final prospectus relating to the offering
will be filed with the SEC and may be obtained, when available, by
contacting A.G.P./Alliance Global Partners, 590 Madison Avenue,
36th Floor, New York, NY 10022 or via telephone at 212-624-2060 or
email: prospectus@allianceg.com.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy these securities,
nor shall there be any sale of these securities in any state or
other jurisdiction in which such offer, solicitation, or sale would
be unlawful prior to the registration or qualification under the
securities laws of any such state or other jurisdiction.
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.
Forward-Looking Statements
To 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 the risk factors in the section captioned “Risk Factors” in the
registration statement and final prospectus related to this
offering filed with the Securities and Exchange Commission.
For Obalon Therapeutics,
Inc.
Investor Contact: William Plovanic President
& Chief Financial Officer Obalon Therapeutics, Inc. Office: +1
760 607 5103 wplovanic@obalon.com
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