Obalon slashes debt, raises $9m for weight loss balloon


2019-07-11 12:03:00 mass


Obalon Therapeutics said today that it slashed its debt load and added nearly $9 million to its coffers as it pivots toward a retail strategy. In April the Carlsbad, Calif.-based company, which makes a gas-filled balloon designed to treat obesity, revealed plans to lay off 50% of its employees, including all of its direct sales force, as it shifts its business model toward company-owned or managed retail centers. Obalon later tapped an advisory firm to explore “strategic alternatives” and last month registered a stock offering worth more than $17 million. Today the company said it cut its debt to Pacific Western Bank from $20 million to $5 million, thereby lowering its annual interest expenses from about $1.4 million to $350,000. Obalon also said it raised $8.8 million during the second quarter via an equity offering, stock sales through its equity line of credit with Lincoln Park Capital and an at-the-market offering. “We are pleased to have been able to utilize our multi-pronged approach to raise capital and improve our balance sheet,” president & CEO William Plovanic said in prepared remarks. “We are now focused on driving new strategic initiatives that can more efficiently convert consumer interest in our novel FDA-approved treatment for obesity into patient treatments, including developing a network of company-owned or managed Obalon-branded retail centers. We expect to be able to provide more detail on our revised commercial strategy in the coming weeks.”
奥巴龙治疗公司( ObalonTherapeutics )今天表示,在转向零售战略之际,该公司削减了债务负担,并增加了近900万美元的资金。 今年4月,加利福尼亚州卡尔斯巴德。这家生产专门治疗肥胖的充气气球的公司透露,计划裁掉50%的员工,包括所有直接销售人员,同时将商业模式转向公司拥有或管理的零售中心。奥巴龙后来聘请了一家咨询公司来探索“战略替代方案”,并于上月注册了价值超过1700万美元的股票发行。 今天,该公司宣布将其欠西太平洋银行的债务从2000万美元减至500万美元,从而将其年度利息支出从140万美元降至35万美元。 Obalon 还表示,第二季度通过股票发行、通过林肯公园资本( Lincoln Park Capital )的股票信贷额度进行股票销售,以及在市场上进行发售,筹集了880万美元。 “我们很高兴能够利用我们的多管齐下的方法来筹集资金,改善我们的资产负债表,”总裁兼首席执行官威廉•普洛瓦尼( William Plovanic )在准备好的讲话中表示。“我们现在专注于推动新的战略举措,能够更有效地将消费者对我们 FDA 批准的新型肥胖治疗方法的兴趣转化为患者治疗,包括建立一个由公司拥有或管理的Obalon品牌零售中心组成的网络。我们希望能够在未来几周内提供更多关于我们修订后的商业战略的细节。”