Obalon surges on $10m private placement

Obalon Therapeutics (NSDQ:OBLN) shares are up today after the weight loss device maker said it inked a private placement deal worth $10 million.

San Diego-based Obalon, which makes a gas-filled balloon designed to promote weight loss in obese patients, said investors in the placement include “unaffiliated institutional investors, members of the Company’s management team and the board of directors and certain of their affiliated funds, including Domain Associates and InterWest Partners.”

” The company plans to use the proceeds from the private placement for commercial operations, working capital and general corporate purposes,” Obalon said.

The offering, of 5.5 million shares, was priced as $1.82 per share and is slated to close August 27. OBLN shares jumped 35.7% to $2.375 apiece today in mid-morning trading.

Earier this year Obalon was forced to spike a planned $35 million offering due to a whistleblower’s allegations of improper revenue recognition that a company probe later found to be meritless.

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