Obalon Therapeutics Announces Proposed Public Offering of Common Stock

SAN DIEGO, Jan. 16, 2018 -- Obalon Therapeutics, Inc. (NASDAQ:OBLN), a vertically integrated medical device company with the first and only FDA-approved swallowable, gas-filled intragastric balloon system for the treatment of obesity, announced that it is commencing an underwritten public offering of $35 million of shares of its common stock.  Obalon Therapeutics also expects to grant the underwriters a 30-day option to purchase up to an additional $5.25 million of shares of its common stock.  The offering is subject to market and other conditions and there can be no assurances as to whether or when the offering may be completed, or as to the actual size or terms of the offering. All of the shares are being offered by Obalon Therapeutics.

UBS Investment Bank, Canaccord Genuity and Stifel are acting as joint book-running managers for the offering. BTIG is acting as a co-manager. 

The offering is being made pursuant to a shelf registration statement that was declared effective by the Securities and Exchange Commission (SEC) on November 17, 2017.  A preliminary prospectus supplement describing the terms of the offering will be filed with the SEC and will be available on the SEC's website at www.sec.gov.  Copies of the preliminary prospectus supplement and accompanying prospectus relating to the offering may also be obtained, when available, by contacting UBS Securities LLC, Attention: Prospectus Department, 1285 Avenue of the Americas, New York, NY 10019 or by telephone at (888) 827-7275 or by e-mail at [email protected]; Canaccord Genuity Inc., Attention: Syndicate Department, 99 High Street, 12th Floor, Boston, MA 02110 or by telephone at (617) 371-3900 or by e-mail at [email protected]; or Stifel, Nicolaus & Company, Incorporated, Attention: Syndicate, One Montgomery Street, Suite 3700, San Francisco, CA 94104 or by telephone at (415) 364-2720 or by email at [email protected].

This news release shall not constitute an offer to sell or the solicitation of an offer to buy, 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 registration or qualification under the securities laws of any such state or other jurisdiction.

Forward-Looking Statements

Certain of the statements made in this press release are forward looking, such as those, among others, relating to Obalon Therapeutics’ expectations regarding the completion, size and timing of the public offering and its expectations with respect to granting the underwriters a 30-day option to purchase additional shares.  Actual results or developments may differ materially from those projected or implied in these forward-looking statements.  Factors that may cause such a difference include risks and uncertainties related to completion of the public offering on the anticipated terms or at all, market conditions and the satisfaction of customary closing conditions related to the public offering.  More information about the risks and uncertainties faced by Obalon Therapeutics is contained in the section captioned “Risk factors” in the preliminary prospectus supplement related to the public offering filed with the SEC.  Obalon Therapeutics disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Contact:
William Plovanic
Chief Financial Officer
Obalon Therapeutics, Inc.
Office: +1 760.607.5103
[email protected]

Media:
Megan Driscoll
EvolveMKD
Office: +1 646.517.4220
[email protected]