Recent equity capital raising activities position the company to pursue commercial strategy intended to more efficiently leverage the Obalon Balloon System
SAN DIEGO, July 10, 2019 (GLOBE NEWSWIRE) -- 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 has reduced its outstanding debt under a facility with Pacific Western Bank from $20 million to $5 million. The reduction in debt is expected to lower the Company’s annual interest expense burden from approximately $1.4 million to approximately $350,000.
Throughout the second quarter of 2019, Obalon raised approximately $8.8 million in gross proceeds through a series of financings including a registered direct equity offering with A.G.P./Alliance Global Partners acting as our financial advisor, the sale of common stock through its equity line of credit with Lincoln Park Capital and an at-the-market (ATM) equity offering through Canaccord Genuity acting as sales agent.
“We are pleased to have been able to utilize our multi-pronged approach to raise capital and improve our balance sheet,” said William J. Plovanic, President and Chief Financial Officer of Obalon. “We are now focused on driving new strategic initiatives that can more efficiently convert consumer interest in our novel FDA-approved treatment for obesity into patient treatments, including developing a network of company-owned or managed Obalon-branded retail centers. We expect to be able to provide more detail on our revised commercial strategy in the coming weeks.”
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.
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. 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’ current report on Form 8-K filed with the Securities and Exchange Commission on June 24, 2019, and its future periodic reports filed with the Securities and Exchange Commission.
For Obalon Therapeutics, Inc.
President & Chief Financial Officer
Obalon Therapeutics, Inc.
Office: +1 760 607 5103