Obalon Announces Reverse Stock Split Effective Today
July 24 2019 - 8:53AM
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 its Board of Directors
has declared a 1-for-10 reverse stock split of the company’s common
stock. The reverse stock split will become effective today, July
24, 2019 (the “Effective Date”). The company’s common stock is
expected to begin trading on a split-adjusted basis when the
markets open on July 25, 2019 under the existing trading symbol
“OBLN.”
The reverse stock split is primarily intended to bring the
company into compliance with the minimum bid price requirements for
maintaining its listing on the Nasdaq Global Market. The new CUSIP
number following the reverse split will be 67424L209.
As a result of the reverse stock split, every 10 shares of the
company’s common stock issued and outstanding or held by the
company as treasury stock will be automatically reclassified into
one new share of common stock. Proportionate adjustments will be
made to the conversion and exercise prices of the Company's
outstanding equity awards and options, and to the number of shares
issued and issuable under the company's equity incentive plans. The
common stock issued pursuant to the reverse stock split will remain
fully paid and non-assessable. The reverse stock split will not
affect the number of authorized shares of common stock or the par
value of the common stock. The reverse stock split was approved by
the company’s stockholders at the company’s annual stockholder
meeting held on July 23, 2019 at a ratio in the range of 1-for-5
and 1-for-20, such ratio to be determined by the company’s Board of
Directors in its discretion and included in a public announcement.
On July 23, 2019, the company’s Board of Directors approved the
reverse stock split at the ratio of 1-for-10.
The reverse stock split will affect all stockholders uniformly
and will not alter any stockholder's percentage interest in the
company, except to the extent that the reverse stock split would
result in a stockholder owning a fractional share. Any fractional
shares of common stock resulting from the reverse stock split will
be rounded up to the nearest whole share and no stockholders will
receive cash in lieu of fractional shares. Proportionate voting
rights and other rights and preferences of common stock holders
will not be affected by the reverse stock split. The company’s
transfer agent, American Stock Transfer & Trust Company, will
act as its exchange agent for the reverse stock split. American
Stock Transfer & Trust Company will provide stockholders of
record holding certificates representing pre-split shares of the
company's common stock as of the effective date, if any, a letter
of transmittal providing instructions for the exchange of shares.
Registered stockholders holding pre-split shares of the company's
common stock electronically in book-entry form are not required to
take any action to receive post-split shares. Stockholders owning
shares via a broker, bank, trust or other nominee will have their
positions automatically adjusted to reflect the reverse stock
split, subject to such broker's particular processes, and will not
be required to take any action in connection with the reverse stock
split.
Additional information about the reverse stock split and
stockholder approval can be found in the Company’s definitive proxy
statement filed with the Securities and Exchange Commission (the
“SEC”) on June 13, 2019, which is available free of charge at the
SEC’s website, www.sec.gov, and at the company’s website,
www.obalon.com.
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’ annual report on Form 10-K filed with the Securities
and Exchange Commission on February 22, 2019, Form 10-Q filed with
the Securities and Exchange Commission on May 10, 2019, and its
future periodic reports 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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