Obalon Enters into New Stock Purchase Agreement with Lincoln Park Capital Fund
SAN DIEGO, Feb. 07, 2020 (GLOBE NEWSWIRE) -- Obalon Therapeutics, Inc. (NASDAQ:), 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 .
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:
