Obalon Announces Receipt of Delisting Notification Letters from Nasdaq
May 17 2019 - 04:01PM
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 received two written
notices from the Listing Qualifications Staff of
the Nasdaq Stock Market LLC ("Nasdaq") informing it that
the Company is no longer in compliance with the Nasdaq Listing
Rules.
On May 15, 2019 the Company received a written notice from
Nasdaq notifying the Company that it is not in compliance with
Nasdaq Listing Rule 5450(b)(1)(A) based on the Company’s Quarterly
Report on Form 10‑Q for the quarter ended March 31, 2019, which
reported the Company’s stockholders’ equity as $6,518,000, which is
below the minimum of $10,000,000 in stockholders’ equity required
for continued listing. On May 16, 2019, the Company received a
second written notice from Nasdaq notifying the Company that the
closing bid price for its common stock had been below $1.00 for the
last 30 consecutive business days and that the Company therefore is
not in compliance with the minimum bid price requirement for
continued inclusion on the Nasdaq Global Market under Nasdaq
Listing Rule 5450(a)(1). These Nasdaq notifications do not result
in the immediate delisting of the Company's common stock, and the
shares will continue to trade uninterrupted under the symbol "OBLN"
as described in the following paragraph.
The Company has 45 days, or until July 1, 2019, to
submit a plan to regain compliance with the minimum stockholders'
equity requirement. If Nasdaq accepts the plan, it may grant the
Company an extension of up to 180 days from the date of the notice
to regain compliance. In the event that Nasdaq does not
accept the Company’s compliance plan, the Company’s common stock
will be delisted, although the Company will have the opportunity to
appeal the decision. Alternatively, the Company may apply to
transfer to the Nasdaq Capital Market, which has a lower minimum
stockholders' equity requirement, if it satisfies all of the Nasdaq
Capital Market’s listing requirements.
To regain compliance with the minimum bid price requirement, the
Company’s common stock must have a closing bid price of at least
$1.00 for a minimum of ten days within the 180-day period from the
date of the second notice, or by November 12, 2019. In the
event that the Company’s common stock does not close at a bid price
of at least $1.00 for a minimum of ten days in the first 180-day
period, the Company may be eligible for a second 180-day period to
comply, provided that the Company complies with the continued
listing requirement for market value of publicly held shares and
all other initial listing standards for Nasdaq, among other
requirements.
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, including
statements regarding the impact of the organizational restructuring
and transition to a new commercial approach. 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. Such risks and
uncertainties include, among others, uncertainties related to the
Company’s ability to regain compliance with the Nasdaq listing
standards and the impact of having the Company’s shares delisted
from the Nasdaq. Obalon Therapeutics undertakes no obligation to
update or revise any forward-looking statements. For a further
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.
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.
For Obalon Therapeutics, Inc.
Investor Contact: William Plovanic Chief Financial
Officer Obalon Therapeutics, Inc. Office: +1 760 607
5103 wplovanic@obalon.com
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