Obalon Therapeutics reduced its outstanding debt under a facility with Pacific Western Bank from $20 million to $5 million.
The reduction in debt is expected to lower the company’s annual interest expense burden from approximately $1.4 million to approximately $350,000.
Throughout the second quarter of 2019, Obalon raised approximately $8.8 million in gross proceeds through a series of financings including a registered direct equity offering with A.G.P./Alliance Global Partners acting as its financial advisor, the sale of common stock through its equity line of credit with Lincoln Park Capital and an at-the-market (ATM) equity offering through Canaccord Genuity acting as sales agent.
“We are pleased to have been able to utilize our multi-pronged approach to raise capital and improve our balance sheet,” said William J. Plovanic, president and chief financial officer of Obalon. “We are now focused on driving new strategic initiatives that can more efficiently convert consumer interest in our novel FDA-approved treatment for obesity into patient treatments, including developing a network of company-owned or managed Obalon-branded retail centers. We expect to be able to provide more detail on our revised commercial strategy in the coming weeks.”
San Diego, CA-based Obalon Therapeutics is focused on developing and commercializing novel technologies for weight loss.
