OBLN Stock: 12 Things to Know About the ReShape-Obalon Merger as Shares Balloon Higher


Obalon Therapeutics (NASDAQ:OBLN) stock is skyrocketing on Wednesday after announcing merger plans with ReShape Lifesciences (OTCMKTS:RSLS).

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Here’s everything investors in OBLM stock and RSLS stock need to know about the ReShape-Obalon merger.

  • An all-stock merger will have the two companies combining with RSLS shareholders owning a majority of the new company.
  • This will also see Obalon Therapeutics renamed to ReShape Lifesciences and the OBLN stock ticker changed to RSLS.
  • This will have the shares of RSLS stock trading on the Nasdaq Exchange.
  • To go along with this, the current directors and executives at ReShape Lifesciences will serve as leaders of the combined company.
  • The merger agreement already has unanimous support from both companies’ Boards of Directors.
  • Obalon Therapeutics and ReShape Lifesciences still need to complete customary closing conditions before the deal is complete.
  • That includes getting approval from holders of OBLN stock and RSLS stock, as well as from regulators.
  • The companies don’t provide a period for when they expect the merger to close.
  • Obalon Therapeutics and ReShape Lifesciences both focus on weight loss products.
  • OBLN’s leading product is a weight loss balloon.
  • This comes in the form of capsules that patients swallow that then inflate in their stomachs.
  • The balloons keep the person from eating too much and promote healthy eating habits to help them lose weight.

OBLN stock was up 301.9% and RSLS stock was up 25% as of Wednesday morning.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Article printed from InvestorPlace Media, https://investorplace.com/2021/01/obln-stock-12-things-to-know-about-the-reshape-obalon-merger-as-shares-balloon-higher/.

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