Obalon Therapeutics closes $10m private placement

Obalon Therapeutics (NSDQ:OBLN) saw shares rise today after it closed a private placement that brought in gross proceeds of $10 million.

In the offering, the San Diego-based company sold approximately 5.5 million shares at a price of $1.82 per share.

Obalon, which makes a gas-filled balloon designed to promote weight loss in obese patients, said that the round included participation from institutional investors, members of the company’s management team and board of directors as well as their affiliated funds, including Domain Associates and InterWest Partners, according to an SEC filing.

Shares in Obalon have risen approximately 11% today, at $3.10 as of 11:54 a.m. EDT.

Obalon saw shares rise last week after announcing the offering, seeing them jump 35.7% to approximately $2.38 last Thursday.

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.

The post Obalon Therapeutics closes $10m private placement appeared first on MassDevice.

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