Obalon Announces Further Impacts Related To Covid-19 Crisis and Current Business Environment
As previously announced, the overall uncertainty, the restriction on elective procedures and the specific directives issued by the Governor of
Given those impacts and the significant concern about an economic recovery that would allow consumers to feel confident enough to spend on a cash-pay procedure like the Obalon Balloon System, the Company does not currently plan to re-open its retail stores or to re-initiate its expansion plans for additional retail centers. Additionally, the Company does not currently plan to restart manufacturing operations or to ship orders to its US customers or international distributor. As a result, the Company would not expect to report any meaningful revenue during the period beginning with the second quarter of 2020 and through at least the end of 2020.
The Company previously announced that it had engaged Canaccord Genuity as its financial advisor to explore strategic alternatives. To date, the Company has been unable to identify a strategic transaction that the board of directors believes to be in the best interests of the stockholders.
The Company continues to believe the Obalon balloon system can provide significant benefits to patients and value to the healthcare system. As a result, Obalon is taking steps to significantly reduce expenses in an effort to extend its cash runway while it evaluates potential business options and strategic alternatives that may be available when and if the current Covid crisis stabilizes and the economy rebounds. The immediate plans include a voluntary reduction in annual salary for all current executives to
The Company anticipates providing more detail on the state of its business and future strategies and plans in connection with the filing of its quarterly report on Form 10-Q for the quarter ended
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 include those associated with the impact of the COVID-19 pandemic and those described in Obalon’s annual report on Form 10-K for the period ended
Obalon Therapeutics, Inc.Investor Contact: Bill Plovanic President and Chief Executive Officer Obalon Therapeutics, Inc. Office: +1 760 607 5103 firstname.lastname@example.org
Source: Obalon Therapeutics, Inc.