(Reuters) – Maker of weight-loss balloons Obalon Therapeutics said on Wednesday it was exploring financial and strategic alternatives due to the uncertainty regarding COVID-19 and restrictions on non-essential medical procedures, which have had a direct impact on its business.
Alternatives may include equity or debt financing, sale of the company, business combination, merger or reverse merger with another party, the company said.
The COVID-19 crisis has significantly impacted Obalon’s stock price and its ability to access additional capital, the company added.
Shares of Obalon have fallen nearly 60% since mid-February.
The company sells intragastric balloons that are used to assist with weight loss. The patient swallows a capsule attached to a micro-catheter, and the balloon is inflated with gas as the capsule dissolves. The micro-catheter is later removed by the doctor.
The California-based company said patients already undergoing treatment with Obalon will continue to receive full care, but it has halted manufacturing operations and sales.
The company has engaged Canaccord Genuity LLC as financial advisor.
Reporting by Trisha Roy in Bengaluru; Editing by Vinay Dwivedi