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SAN DIEGO, May 17, 2019 (GLOBE NEWSWIRE) -- Obalon Therapeutics, Inc. (NASDAQ:OBLN), a vertically integrated medical technology company with the first and only FDA-approved swallowable, gas-filled intragastric balloon system for the treatment of obesity, announces that it received two written notices from the Listing Qualifications Staff of the Nasdaq Stock Market LLC ("Nasdaq") informing it that the Company is no longer in compliance with the Nasdaq Listing Rules.
On May 15, 2019 the Company received a written notice from Nasdaq notifying the Company that it is not in compliance with Nasdaq Listing Rule 5450(b)(1)(A) based on the Company’s Quarterly Report on Form 10‑Q for the quarter ended March 31, 2019, which reported the Company’s stockholders’ equity as $6,518,000, which is below the minimum of $10,000,000 in stockholders’ equity required for continued listing. On May 16, 2019, the Company received a second written notice from Nasdaq notifying the Company that the closing bid price for its common stock had been below $1.00 for the last 30 consecutive business days and that the Company therefore is not in compliance with the minimum bid price requirement for continued inclusion on the Nasdaq Global Market under Nasdaq Listing Rule 5450(a)(1). These Nasdaq notifications do not result in the immediate delisting of the Company's common stock, and the shares will continue to trade uninterrupted under the symbol "OBLN" as described in the following paragraph.
The Company has 45 days, or until July 1, 2019, to submit a plan to regain compliance with the minimum stockholders' equity requirement. If Nasdaq accepts the plan, it may grant the Company an extension of up to 180 days from the date of the notice to regain compliance. In the event that Nasdaq does not accept the Company’s compliance plan, the Company’s common stock will be delisted, although the Company will have the opportunity to appeal the decision. Alternatively, the Company may apply to transfer to the Nasdaq Capital Market, which has a lower minimum stockholders' equity requirement, if it satisfies all of the Nasdaq Capital Market’s listing requirements.
To regain compliance with the minimum bid price requirement, the Company’s common stock must have a closing bid price of at least $1.00 for a minimum of ten days within the 180-day period from the date of the second notice, or by November 12, 2019. In the event that the Company’s common stock does not close at a bid price of at least $1.00 for a minimum of ten days in the first 180-day period, the Company may be eligible for a second 180-day period to comply, provided that the Company complies with the continued listing requirement for market value of publicly held shares and all other initial listing standards for Nasdaq, among other requirements.
To the extent that statements contained in this press release are not descriptions of historical facts regarding Obalon Therapeutics, they are forward-looking statements reflecting the current beliefs and expectations of management made pursuant to the safe harbor of the Private Securities Reform Act of 1995, including statements regarding the impact of the organizational restructuring and transition to a new commercial approach. Such forward-looking statements involve substantial risks and uncertainties that could cause Obalon Therapeutics' future results, performance or achievements to differ significantly from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, uncertainties related to the Company’s ability to regain compliance with the Nasdaq listing standards and the impact of having the Company’s shares delisted from the Nasdaq. Obalon Therapeutics undertakes no obligation to update or revise any forward-looking statements. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to Obalon Therapeutics' business in general, please refer to Obalon Therapeutics’ annual report on Form 10-K filed with the Securities and Exchange Commission on February 22, 2019, Form 10-Q filed with the Securities and Exchange Commission on May 10, 2019, and its future periodic reports filed with the Securities and Exchange Commission.
About Obalon Therapeutics, Inc.
Obalon Therapeutics, Inc. (NASDAQ:OBLN) is a San Diego-based company focused on developing and commercializing novel technologies for weight loss. For more information, please visit www.obalon.com.
For Obalon Therapeutics, Inc.
Chief Financial Officer
Obalon Therapeutics, Inc.
Office: +1 760 607 5103