Obalon Enters into New Stock Purchase Agreement with Lincoln Park Capital Fund
February 07 2020 - 4:15PM
Obalon Therapeutics, Inc. (NASDAQ:OBLN), a vertically integrated
weight loss solutions company commercializing the first and only
FDA-approved swallowable, gas-filled intragastric balloon system
for the treatment of obesity, announces that it has entered
into a new common stock purchase agreement and registration rights
agreement (together, the “Agreements”) with Lincoln Park
Capital Fund, LLC (“LPC”), a Chicago-based institutional
investor, for up to $15 million. The new Agreements replace
existing agreements between the Company and LPC.
Under the terms of the Agreements and following the filing and
effectiveness of a registration statement, Obalon will have the
right at its sole discretion to sell to LPC up to $15
million worth of shares over a 36-month period, subject to
various limitations including those under the NASDAQ listing
rules. Furthermore, the Company will control the timing of any
sales to LPC, and LPC will be obligated to make purchases
of the Company’s common stock upon receipt of requests
from the Company. There are no upper limits to the price per
share LPC may pay to purchase the up to $15 million worth of
common stock, and the purchase price of the shares will be based on
the then prevailing market prices of the Company’s shares at the
time of each sale to LPC. Proceeds will be used by the
Company for general corporate purposes.
“We are pleased to enter into this second
agreement with Lincoln Park Capital and expect to use the proceeds,
as available, to fund expansion of the Company-owned or managed
retail treatment center model,” said Bill Plovanic, President and
Chief Executive Officer of Obalon.
There are no warrants, derivatives, financial or business
covenants associated with the Agreements, and LPC has agreed not to
cause or engage in any manner whatsoever, any direct or indirect
short selling or hedging of shares of the Company’s common
stock. The Agreements may be terminated by the Company at any
time, at its sole discretion, without any cost or penalty.
A more detailed description of the Agreements is set forth in
the Company's Current Report on Form 8-K as filed with the SEC
on February 7, 2020.
The offer and sale of the securities in the above transaction
have not been registered under the Securities Act of 1933, as
amended (the “Securities Act”), or any state securities laws and
may not be offered or sold in the United States absent registration
under the Securities Act and any applicable state securities laws
or an applicable exemption from such registration.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy the securities in this offering,
nor will there be any sale of these securities in any jurisdiction
in which such offer solicitation or sale are unlawful prior to
registration or qualification under securities laws of any such
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. For more information, please
visit http://www.obalon.com.
Cautionary Statement Regarding Forward Looking
Statements
This press release contains forward-looking statements that are
not purely historical regarding Obalon’s or its management’s
intentions, beliefs, expectations and strategies for the future,
including those related to new products and their potential
benefits. All forward-looking statements and reasons why results
might differ included in this press release are made as of the date
of this release, based on information currently available to
Obalon, deal with future events, are subject to various risks and
uncertainties, and actual results could differ materially from
those anticipated in those forward looking statements. The risks
and uncertainties that may cause actual results to differ
materially from Obalon’s current expectations are more fully
described in Obalon’s annual report on Form 10-K for the period
ended December 31, 2018, its quarterly report on Form 10-Q for the
period ended September 30, 2019 and its other reports, each as
filed with the Securities and Exchange Commission. Except as
required by law, Obalon assumes no obligation to update any such
forward-looking statement after the date of this report or to
conform these forward-looking statements to actual results.
For Obalon Therapeutics, Inc.
Investor Contact: Bill Plovanic President and Chief
Executive Officer Obalon Therapeutics, Inc. Office: +1
760 607 5103 wplovanic@obalon.com
Obalon Therapeutics (NASDAQ:OBLN)
Historical Stock Chart
From Aug 2024 to Sep 2024
Obalon Therapeutics (NASDAQ:OBLN)
Historical Stock Chart
From Sep 2023 to Sep 2024