Obalon lands $30m in capital from new deals

December 28, 2018 By Sarah Faulkner Leave a Comment

Obalon Therapeutics (NSDQ:OBLN) said this week that it inked two financing deals that could provide the company with up to $30 million in capital.

The San Diego, Calif.-based company sells the only FDA-approved, swallowable intragastric balloon system for the treatment of obesity.

In one deal, Obalon entered a common stock purchase agreement with Chicago-based institutional investor Lincoln Park Capital Fund for up to $20 million. According to the terms of the deal, Obalon will have the right to sell up to $20 million worth of shares to LPC over a 36-month period.

The company also entered into an at-the-market equity offering sales deal with Canaccord Genuity. According to the terms of the agreement, Obalon can issue common shares at prevailing market prices with an aggregate gross sales amount of up to $10 million.

The company said it plans to use any net proceeds it gets from either deal for general corporate purposes including clinical studies, R&D costs or the repayment of debt.

Also this month, Obalon won FDA clearance for its navigation system intended for use in placing the company’s intragastric balloon. The Obalon Navigation system uses MRI during placement and provides a real-time image of the balloon.

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