ReShape Lifesciences Announces 1-for-58 Reverse Stock Split

Rhea-AI Summary

ReShape Lifesciences Inc. (Nasdaq: RSLS) has announced a 1-for-58 reverse stock split of its common stock, effective for trading on September 23, 2024. This decision, approved by stockholders on February 23, 2024, will convert every 58 shares of issued and outstanding common stock into one share. The reverse split will also affect the company's outstanding warrants, stock options, and convertible preferred stock proportionally. Fractional shares will be rounded up, and the number of authorized shares will remain unchanged. Stockholders will receive instructions from Equiniti Trust Company, regarding the exchange of existing certificates. The new CUSIP number for RSLS common stock post-split will be 76090R309.

Positive

• Potential to maintain Nasdaq listing compliance by increasing share price
• Stockholder approval obtained for the reverse stock split
• Fractional shares will be rounded up, benefiting shareholders

Negative

• Significant reduction in the number of outstanding shares
• Possible short-term stock price volatility following the split
• Risk of not achieving desired share price levels post-split

Effective as of Commencement of Trading on September 23, 2024

IRVINE, Calif., Sept. 19, 2024 (GLOBE NEWSWIRE) -- ReShape Lifesciences Inc. (Nasdaq: RSLS), the premier physician-led weight loss and metabolic health solutions company, today announced that its Board of Directors has declared a 1-for-58 reverse stock split of the company’s common stock, which will be effective for trading purposes upon the commencement of trading on September 23, 2024. At that time, each 58 shares of issued and outstanding common stock and equivalents will be converted into one share of common stock. As a result of the reverse stock split, proportional adjustments will be made to the number of shares of common stock issuable upon exercise or conversion, and the per share exercise or conversion price of the company’s outstanding warrants, stock options and convertible preferred stock, in each case in accordance with their terms. Any fractional shares of common stock resulting from the reverse stock split will be rounded up to the nearest whole share. The number of authorized shares of common stock and preferred stock under the company’s certificate of incorporation will not be reduced in connection with the reverse stock split.

The reverse stock split was approved by ReShape Lifesciences’ stockholders at the company’s annual meeting of stockholders held on February 23, 2024. ReShape Lifesciences stockholders will receive instructions from the company’s transfer agent, Equiniti Trust Company, LLC, as to procedures for exchanging existing stock certificates for new certificates or book-entry shares. The new CUSIP number for the company’s common stock following the reverse stock split will be 76090R309.

About ReShape Lifesciences Inc.

ReShape Lifesciences^® is America’s premier weight loss and metabolic health-solutions company, offering an integrated portfolio of proven products and services that manage and treat obesity and metabolic disease. The FDA-approved Lap-Band^® System provides minimally invasive, long-term treatment of obesity and is an alternative to more invasive surgical stapling procedures such as the gastric bypass or sleeve gastrectomy. The investigational Diabetes Bloc-Stim Neuromodulation™ (DBSN™) system utilizes a proprietary vagus nerve block and stimulation technology platform for the treatment of type 2 diabetes and metabolic disorders. The Obalon^® balloon technology is a non-surgical, swallowable, gas-filled intra-gastric balloon that is designed to provide long-lasting weight loss. For more information, please visit www.reshapelifesciences.com.

Contacts

ReShape Lifesciences Investor Contact:
Paul F. Hickey
President and Chief Executive Officer
949-276-7223
ir@ReShapeLifesci.com

Investor Relations Contact:
Rx Communications Group
Michael Miller
917-633-6086
mmiller@rxir.com
139996032.1

FAQ

What is the reverse stock split ratio for ReShape Lifesciences (RSLS)?

ReShape Lifesciences (RSLS) has announced a 1-for-58 reverse stock split, meaning every 58 shares will be converted into one share.

When will the ReShape Lifesciences (RSLS) reverse stock split take effect?

The reverse stock split for ReShape Lifesciences (RSLS) will be effective for trading purposes upon the commencement of trading on September 23, 2024.

Will the ReShape Lifesciences (RSLS) reverse split affect outstanding warrants and options?

Yes, proportional adjustments will be made to the number of shares issuable and the per share exercise or conversion price of ReShape Lifesciences' (RSLS) outstanding warrants, stock options, and convertible preferred stock.

What is the new CUSIP number for ReShape Lifesciences (RSLS) stock after the reverse split?

The new CUSIP number for ReShape Lifesciences (RSLS) common stock following the reverse stock split will be 76090R309.