Obalon Therapeutics (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, today announced that it has entered into two financing agreements that could enable the Company to access up to $30 million of capital. As quoted in the press release: Obalon …

As quoted in the press release:

Obalon entered into a common stock purchase agreement and registration rights agreement (together, the “Agreements”) with Lincoln Park Capital Fund, LLC (“LPC”), a Chicago-based institutional investor, for up to $20.0 million.
Subject to the terms of the Agreements and following the filing and effectiveness of a registration statement, Obalon will have the right and the sole discretion to sell to LPC up to $20 million worth of shares over a 36-month period. Obalon will control the timing and amount of any future investment and LPC will be obligated to make purchases in accordance with the Agreements and at a purchase price that is based on the then prevailing market prices of the Company’s shares at the time of each sale to LPC. There are no upper limits to the price at which the shares may be sold to LPC.
LPC has agreed not to cause or engage in any manner whatsoever, in any direct or indirect short selling or hedging of shares of the Company’s common stock. No warrants, derivatives, financial or business covenants are associated with the Agreements. In consideration for entering into the Agreements, Obalon has issued shares to LPC as a commitment fee. The Agreements may be terminated by the Company at any time, at its sole discretion, without any cost or penalty.

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