Obalon Therapeutics, Inc. Announces Two Agreements To Provide Up To $30 Million of Capital
LINCOLN PARK CAPITAL FUND AGREEMENT:
Obalon entered into a common stock purchase agreement and registration rights agreement (together, the “Agreements”) with
Subject to the terms of the Agreements and following the filing and effectiveness of a registration statement, Obalon will have the right and the sole discretion to sell to LPC up to
LPC has agreed not to cause or engage in any manner whatsoever, in any direct or indirect short selling or hedging of shares of the Company’s common stock. No warrants, derivatives, financial or business covenants are associated with the Agreements. In consideration for entering into the Agreements, Obalon has issued shares to LPC as a commitment fee. 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
AT-THE-MARKET OFFERING PROGRAM:
Obalon entered into an At-the-Market (ATM) equity offering sales agreement with
In connection with the ATM, Obalon has filed a Prospectus Supplement with the
A registration statement on Form S-3 relating to shares of Common Stock subject to the ATM was filed with the
Obalon expects to use net proceeds, if any, from the Agreements with LPC and the ATM program over time as a source for general corporate purposes, which may include, without limitations, sales and marketing costs, clinical studies, research and development costs, manufacturing development, the acquisition or licensing of other businesses or technologies, repayment and refinancing of debt, working capital and capital expenditures.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in these offerings, 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.
To the extent that statements contained in this press release are not descriptions of historical facts regarding
Investor and Media Contact:
Chief Financial Officer
Office: +1 760 607 5103
Source: Obalon Therapeutics, Inc.