ReShape Lifesciences Inc. (OTCQB: RSLS) reported entry into a definitive agreement to merge with Obalon Therapeutics, Inc. (NASDAQ: OBLN). The company’s will merge in an all-stock transaction. The merger has been approved by boards of directors in each company as existing ReShape stockholders will receive majority ownership of the combined company following close of the merger. Obalon will be renamed ReShape Lifesciences Inc. and will trade under the NASDAQ ticker “RSLS.”
Bart Bandy, President and Chief Executive Officer of ReShape commented, “We are excited with this opportunity to add Obalon’s FDA approved Balloon System to ReShape’s line of minimally invasive weight-loss solutions while also expanding our market reach. Our portfolio also includes the Lap-Band®, emerging products that support bariatric surgical procedures across the spectrum and ReShapeCareTM, which is our reimbursed, telehealth-based patient support program that is available for any medically supervised weight loss program. This integration positions us to achieve our goals for growth and continued advancement towards becoming the premier weight loss company for physicians and patients.”
Finalization of the merger is subject to closing conditions such as approval by stockholders of ReShape and Obalon, the Securities and Exchange Commission approving the OBalon registration statement that register the shares to be issued in connection with the merger. This includes the NASDAQ exchange approval of the continued listing and combined company.