On March 13, 2017, the Board of Directors (the “Board”) of Obalon Therapeutics, Inc. (the “Company”) appointed David Moatazedi as a Class II Director, effective as of the same date. In addition, Mr. Moatazedi was appointed to the Audit Committee and the Compensation Committee of the Board.

Mr. Moatazedi will receive annual cash retainers of $35,000, $7,500 and $5,000 for his service on the Board, the Audit Committee and the Compensation Committee, respectively, in accordance with the Company’s existing compensation policy for non-employee directors. In addition, the Board granted to Mr. Moatazedi, effective March 13, 2017, an option to purchase 59,988 shares of the Company’s common stock at an exercise price of $9.55 per share, which will vest monthly over three years, subject to Mr. Moatazedi’s continued service to the Company.

The Company has entered into its standard form of indemnification agreement with Mr. Moatazedi. A form of the indemnification agreement was previously filed by the Company as Exhibit 10.1 to the Company’s Registration Statement on Form S-1 filed with the Securities and Exchange Commission on September 26, 2016.

There is no arrangement or understanding with any person to which Mr. Moatazedi was appointed as a member of the Board, and Mr. Moatazedi does not have any direct or indirect material interest in any transaction required to be disclosed to Item 404(a) of Regulation S-K.

About OBALON THERAPEUTICS, INC. (NASDAQ:OBLN)

Obalon Therapeutics, Inc. is a United States-based commercial-stage medical device company focused on developing and commercializing medical devices to treat obese and overweight people by facilitating weight loss. The Company’s product, Obalon balloon system, is a swallowable, gas-filled intragastric balloon designed to provide weight loss in obese patients. The Obalon balloon system is intended to be used as an adjunct to a moderate intensity diet and behavior modification program. All balloons must be removed six months after the first balloon is placed. The Obalon balloon system intends to provide patients and physicians with a reversible and repeatable weight loss solution in an outpatient setting, without altering patient anatomy or requiring surgery. The Company has received Premarket approval (PMA) for its Obalon balloon system based on the results of its United States pivotal clinical trial, referred to as the SMART trial.

OBALON THERAPEUTICS, INC. (NASDAQ:OBLN) Recent Trading Information

OBALON THERAPEUTICS, INC. (NASDAQ:OBLN) closed its last trading session up +0.45 at 10.06 with 44,075 shares trading hands.