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Obalon Announces Repayment of All Long-Term Debt and Regaining of Compliance with NASDAQ Listing Requirement

963 Days ago

SAN DIEGO, Oct. 03, 2019 (GLOBE NEWSWIRE) -- Obalon Therapeutics, Inc. (NASDAQ:OBLN), a San Diego-based company focused on commercializing the Obalon Balloon System, the first and only FDA-approved swallowable, gas-filled intra-gastric balloon for weight loss, announces that it has retired the remaining $5 million of its long-term debt facility with Pacific Western Bank. In addition to removing the risks and restrictions of carrying long-term debt, the debt payoff eliminates interest expense of approximately $350,000 annually. Separately, the Company announced in an 8-K filing with the SEC today that it believes it has regained compliance with NASDAQ Listing Rule 5450(b)(1)(A) by increasing its stockholder’s equity above the minimum required for continued listing. 

“We are pleased to continue to transform the Company’s financial position and believe that with no long-term debt and our current cash position we are well-positioned to drive our strategy to bring the Obalon Balloon System to patients in need of a proven weight loss solution,” said William J. Plovanic, President and Chief Financial Officer of Obalon. “We remain focused on converting consumer interest in our novel FDA-approved balloon system into patient treatments and successful weight loss experiences, and we are looking forward to the first patient treatments at our Company-owned and managed Obalon Center for Weight Loss.”

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.

Forward-Looking Statements

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. 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. Obalon Therapeutics undertakes no obligation to update or revise any forward-looking statements. For a 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 July 24, 2019, and its future periodic reports filed with the Securities and Exchange Commission.

For Obalon Therapeutics, Inc.

Investor Contact:
William Plovanic
President & Chief Financial Officer
Obalon Therapeutics, Inc.
Office: +1 760 607 5103

Obalon Therapeutics, Inc.

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