Stock Alert: Obalon Therapeutics Surges 75% On News Of Merger With ReShape Lifesciences
(RTTNews) – Shares of Obalon Therapeutics Inc. (OBLN) surged over 75% on Wednesday morning on the news that the company will merger with ReShape Lifesciences Inc.
OBLN is currently trading at $2.84, up $1.23 or 76.40%, on the Nasdaq.
ReShape Lifesciences, a weight-loss solutions company, entered into a merger agreement with Obalon Therapeutics, under which ReShape and Obalon will combine in an all-stock transaction.
Under the agreement, which has been unanimously approved by the boards of both companies, existing ReShape stockholders will have majority ownership of the combined company.
Obalon will be renamed ReShape Lifesciences Inc. and will trade under the NASDAQ ticker symbol “RSLS.”
The current directors and officers of ReShape will comprise the board of directors and executive management of the combined company.
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