Shares of Obalon Therapeutics Inc. OBLN,
exploded six times more in high volume in Wednesday afternoon’s trading after the weight loss technology company announced an agreement to merge with weight loss solutions company ReShape Lifesciences Inc. RSLS,
Obalon’s shares rose 503.4% toward the biggest close since June 2019, while turnover rose to 395.4 million shares, compared with the full-day average of around 626,000 shares. The stock was the most won and most active on major US exchanges on Wednesday. ReShape shares, which are currently traded on the over-the-counter market, rose 155%. When the merger is completed, ReShape shareholders will own 51% of the combined entity, and the company will be renamed Reshape Lifesciences Inc. and will be traded on Nasdaq under the symbol “RSLS”. “We are excited about this opportunity to add Obalon’s FDA-approved Balloon System to ReShape’s line of minimally invasive weight loss solutions, while expanding our market reach,” said Bart Bandy, CEO of ReShape. Obalon’s shares have soared 922.5% in the past three months, while ReShape’s shares have soared 187.3% and S&P 500 SPX,
gained 12.0%.
