Shares of Obalon Therapeutics Inc.
blasted five-fold higher on massive volume in midday trading Wednesday, after the weight loss technologies company announced an agreement to merge with weight loss solutions company ReShape Lifesciences Inc.
Obalon’s stock rose 401.6% toward the highest close since July 2019, while trading volume soared to 250.3 million shares, compared with the full-day average of about 626,000 shares. The stock was the biggest gainer and most active on major U.S. exchanges. ReShape shares, which currently trade over the counter, rose 56.4%. 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 trade on the Nasdaq under the ticker symbol “RSLS.” “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,” said ReShape Chief Executive Bart Bandy. Obalon’s stock has now rocketed 749.9% over the past three months while the S&P 500
has gained 11.7%.
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