The Conversation (0)
Obalon Announces Termination of Public Offering of Common Stock
Jan. 23, 2018 09:20AM PST
Longevity InvestingObalon Therapeutics (NASDAQ:OBLN) announced the termination of the underwriting agreement and cancellation of its previously announced public offering of 5,454,545 shares of its common stock at a public offering price of $5.50 per share. As quoted in the press release: The Offering was scheduled to close on January 23, 2018. However, a purported whistleblower contacted …
Obalon Therapeutics (NASDAQ:OBLN) announced the termination of the underwriting agreement and cancellation of its previously announced public offering of 5,454,545 shares of its common stock at a public offering price of $5.50 per share.
As quoted in the press release:
The Offering was scheduled to close on January 23, 2018. However, a purported whistleblower contacted KPMG LLP, the Company’s independent auditors, to make certain allegations relating to allegedly improper revenue recognition during the Company’s fourth fiscal quarter of 2017 (“Q4 2017”). These allegations were reported to Obalon late in the day on January 22, 2018, making it infeasible for the Company to complete an investigation of the allegations prior to the intended closing of the public offering.