ReShape Lifesciences Completes Merger with Obalon Therapeutics
Shares of ReShape Lifesciences to commence trading on The Nasdaq Capital Market on June 16, 2021 under ticker symbol "RSLS"
Combination creates opportunity for ReShape to expand portfolio of FDA approved weight loss solutions and reimbursed virtual care services
SAN CLEMENTE, CA / ACCESSWIRE / June 16, 2021 / ReShape Lifesciences Inc. (NASDAQ:RSLS), a global weight-loss solutions leader, today announced the completion of the previously announced merger with Obalon Therapeutics. In connection with the merger's closing, Obalon changed its name to ReShape Lifesciences Inc. and the combined company's common stock will begin trading under the ticker symbol "RSLS" on The Nasdaq Capital Market beginning on June 16, 2021.
"As a Nasdaq listed company, ReShape is poised to take advantage of the numerous benefits that accompany this new status, including the opportunity to increase shareholder value and expand visibility in the broader investment community. Completing and reaching this significant milestone represents a pivotal moment in our company's lifecycle," said Bart Bandy, President and Chief Executive Officer of ReShape Lifesciences.
Mr. Bandy continued, "The completion of this merger strengthens our ability to focus on our growth priorities, including our global commercial operations, the integration from this transaction and our internal technologies in development. We are now more confident than ever in ReShape's ability to be a premier and diversified leader in the physician led weight loss industry, dedicated to helping more patients achieve a better quality of life through safe, effective and accessible medical treatment."
With the closing of the merger, the Board of Directors of the combined company consists of the five current members of the Board of Directors of ReShape and the executive officers of the combined company will be the current executive officers of ReShape.
Financial Terms and Advisory Details
Following the completion of the merger, ReShape stockholders and Obalon stockholders own 51% and 49% of the combined company's outstanding common stock respectively.
Maxim Group LLC acted as the financial advisor for ReShape and Fox Rothschild LLP acted as legal counsel for ReShape. Canaccord Genuity Group Inc. acted as the financial advisor for Obalon and Latham & Watkins LLP acted as legal counsel to Obalon.
About ReShape Lifesciences Inc.
ReShape Lifesciences is America's premier weight-loss solutions company, offering an integrated portfolio of proven products and services that manage and treat obesity and metabolic disease. The FDA-approved Lap-Band® program provides minimally invasive, long-term treatment of obesity and is an alternative to more invasive surgical stapling procedures such as the gastric bypass or sleeve gastrectomy. The ReShape Vest™ System is an investigational (outside the U.S.) minimally invasive, laparoscopically implanted medical device that wraps around the stomach, emulating the gastric volume reduction effect of conventional weight-loss surgery. It helps enable rapid weight loss in obese and morbidly obese patients without permanently changing patient anatomy. The recently launched ReShapeCare™ Virtual health coaching program is a virtual telehealth weight management program that supports lifestyle changes for all weight-loss patients, to help them keep the weight off over time.
Forward-Looking Safe Harbor Statement:
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by the use of words such as "expect," "plan," "anticipate," "could," "may," "intend," "will," "continue," "future," other words of similar meaning and the use of future dates. Forward-looking statements in this press release include statements about the benefits of the merger, including the opportunity to increase shareholder value and expand visibility in the investment community. These forward-looking statements are based on the current expectations of our management and involve known and unknown risks and uncertainties that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the failure to integrate the businesses and realize synergies and cost-savings from the merger or delay in realization thereof; operating costs and business disruption following the merger; transaction costs; actual or contingent liabilities; the adequacy of the combined company's capital resources; other business effects, including the effects of industry, economic or political conditions outside of ReShape's control; and the risks identified under the heading "Risk Factors" in ReShape's Annual Report on Form 10-K, which was filed with the SEC on March 11, 2021, and Obalon's Annual Report on Form 10-K, filed with the SEC on March 12, 2021, as well as both companies' subsequent Quarterly Reports on Form 10-Q and other information filed by each company with the SEC. These and additional risks and uncertainties are described more fully in ReShape's and Obalon's filings with the SEC. We are providing this information as of the date of this press release and do not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise, except as required by law.
Chief Financial Officer
ReShape Lifesciences Inc.
SOURCE: ReShape Lifesciences Inc.