Obalon down 27% on equity offering

Nano cap Obalon Therapeutics (NASDAQ:OBLN) slumps 27% premarket on modest volume. Shares have lost half their value since closing at $9.60 on July 23.This morning, itannounceda public offering of ~2M common shares plus five-year common warrants to purchase up to ~1.5M shares at a combined price of $4.00. It is also offering ~1.7M pre-funded warrants, together with common warrants to purchase up to ~1.3M common shares, at $4.00 for both.The common warrants are exercisable at $4.40 per common share.Underwriters over-allotment is an additional ~562K common shares and/or ~423K common warrants. Closing date is August 6.Yesterday's close was $4.85.