PRESS RELEASE

Obalon Therapeutics Inc. Announces Closing of $16.6 Million Public Offering

SAN DIEGO, Aug. 06, 2019 (GLOBE NEWSWIRE) -- 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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Source: Obalon Therapeutics, Inc.

IMPORTANT SAFETY INFORMATION
The Obalon Balloon System is intended for adults with a body mass index (BMI) of 30 to 40 kg/m2 willing to follow a diet and exercise program. All Obalon balloons must be removed in 6 months. Patients with prior weight loss surgeries are not eligible. The most common side effects reported were mild abdominal pain and nausea which typically resolved within two weeks. You must take daily acid-blocking medicine prescribed by your doctor. For full Important Safety Information click onSafety Information and Patient Labeling