Obalon Therapeutics Inc. Announces Closing of $16.6 Million Public Offering
August 06 2019 - 4:01PM
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 closing of its previously announced
underwritten public offering of (i) 2,015,000 shares of common
stock together with common stock purchase warrants (the “purchase
warrants”) to purchase 1,511,250 shares of common stock, (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 and (iii)
412,500 shares of common stock and 421,875 purchase warrants
pursuant to the over-allotment option. The shares of common stock
and accompanying purchase warrants were sold together at a combined
public offering price of $4.00 per share, and the pre-funded
warrants and accompanying purchase warrants were sold at a public
offering price of $3.999 per purchase warrant. 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 purchase warrants have an exercise price of $4.40 per share,
are immediately exercisable and expire five years from the date of
issuance.
A.G.P./Alliance Global Partners acted as sole
book-running manager for the offering.
The gross offering proceeds to the Company from
the offering, before deducting the underwriting discounts and
commissions and other estimated offering expenses, are
approximately $16.6 million.
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 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
was filed with the SEC and is available on the SEC’s website.
Electronic copies of the final prospectus may be obtained 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
the Company, 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 the Company’s future results,
performance or achievements to differ significantly from those
expressed or implied by the forward-looking statements. The Company
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 the
Company’s 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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