Obalon Enters into New Stock Purchase Agreement with Lincoln Park Capital Fund
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
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
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
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.
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
President and Chief Executive Officer
Office: +1 760 607 5103
Source: Obalon Therapeutics, Inc.