ReShape Lifesciences announces a 1-for-25 reverse stock split effective May 9, 2025, following shareholder approval.
Quiver AI Summary
ReShape Lifesciences Inc. has announced a 1-for-25 reverse stock split of its common stock, effective May 9, 2025, following approval from stockholders on April 1, 2025. Under this plan, every 25 shares will be converted into one share, with any fractional shares rounded up to the nearest whole share. This reverse split will also lead to proportional adjustments in the number of shares available through stock options and warrants. Despite the split, the number of authorized shares will remain unchanged. Stockholders will receive instructions from Equiniti Trust Company on how to exchange their existing shares for new ones. ReShape Lifesciences focuses on weight loss and metabolic health solutions, offering products like the FDA-approved Lap-Band® System and the Obalon® balloon technology.
Potential Positives
- Approval of a 1-for-25 reverse stock split may enhance the stock's marketability and attract institutional investors by potentially increasing the stock price.
- The reverse stock split was supported by stockholders, indicating confidence in the company's direction and governance.
- The company maintains the same number of authorized shares, which could provide flexibility for future financing and growth opportunities.
- ReShape Lifesciences continues to focus on innovative weight loss and metabolic health solutions, which positions it well in a growing market sector.
Potential Negatives
- The announcement of a 1-for-25 reverse stock split may signal to investors concerns about the company's stock price performance and could imply a lack of confidence in the company's market position.
- Reverse stock splits are often viewed negatively by the market as they can indicate that a company is struggling, which could lead to decreased investor interest or confidence.
- Investors may face confusion or frustration during the exchange process for new stock certificates, potentially affecting short-term market activity and sentiment towards the company.
FAQ
What is the reverse stock split announced by ReShape Lifesciences?
ReShape Lifesciences has declared a 1-for-25 reverse stock split effective May 9, 2025, converting 25 shares into one share.
When will the reverse stock split take effect?
The reverse stock split will be effective for trading purposes at the commencement of trading on May 9, 2025.
What happens to my existing shares after the reverse stock split?
Your existing shares will be converted at a ratio of 1-for-25, and fractional shares will be rounded up to the nearest whole share.
How can stockholders exchange their existing stock certificates?
Stockholders will receive instructions from Equiniti Trust Company, LLC on how to exchange existing stock certificates for new ones.
What is the new CUSIP number for ReShape Lifesciences' stock?
The new CUSIP number following the reverse stock split will be 76090R408.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
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Full Release
IRVINE, Calif., May 07, 2025 (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-25 reverse stock split of the company’s common stock, which will be effective for trading purposes upon the commencement of trading on May 9, 2025. At that time, each 25 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 special meeting of stockholders held on April 1, 2025. 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 76090R408.
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
[email protected]
Investor Relations Contact:
Rx Communications Group
Michael Miller
917-633-6086
[email protected]
139996032.1
