ReShape Lifesciences regains Nasdaq compliance after meeting stockholders' equity requirements, closing a prior delisting matter.
Quiver AI Summary
ReShape Lifesciences Inc., a company specializing in weight loss and metabolic health solutions, announced that it has regained compliance with Nasdaq's stockholders equity requirement, allowing it to continue its listing on The Nasdaq Capital Market. This follows a situation where Nasdaq had indicated potential delisting due to the company's stockholders' equity being below the required $2.5 million. To rectify this, ReShape sold shares of common stock, raising over $6 million through equity offerings in early June 2025, which brought its stockholders' equity back to compliance levels. ReShape is known for its FDA-approved weight loss solutions, including the Lap-Band System and the Obalon balloon technology, among others.
Potential Positives
- The company has regained compliance with Nasdaq's stockholders equity requirement, ensuring continued listing on The Nasdaq Capital Market.
- This compliance indicates a positive turnaround in the company's financial health, as it raised necessary funds through equity offerings.
- The successful equity offerings demonstrate investor confidence and support for the company's growth strategies.
- Continued listing on Nasdaq allows the company to maintain visibility and access to capital markets for future growth opportunities.
Potential Negatives
- Despite regaining compliance with Nasdaq's stockholders equity requirement, the company had previously faced delisting due to non-compliance, indicating ongoing financial vulnerability.
- The need for significant stock sales to meet compliance raises concerns about the company's overall financial health and sustainability moving forward.
- The low stockholders' equity of $1.2 million as of March 31, 2025, prior to corrective actions, suggests potential instability and risk to investors.
FAQ
What recent compliance achievement did ReShape Lifesciences announce?
ReShape Lifesciences has regained compliance with Nasdaq's stockholders equity requirement as of June 23, 2025.
Why was ReShape Lifesciences previously at risk of delisting?
The company was at risk of delisting due to non-compliance with Nasdaq Listing Rule 5550(b)(1) regarding stockholders’ equity.
How did ReShape Lifesciences improve its stockholders’ equity?
The company improved its stockholders’ equity by selling 593,000 shares and completing an offering of over 1 million shares.
What products does ReShape Lifesciences offer?
ReShape Lifesciences offers products including the Lap-Band® System and the Obalon® balloon technology for weight loss and metabolic health.
Where can I find more information about ReShape Lifesciences?
For more information, visit ReShape Lifesciences' website at www.reshapelifesciences.com.
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., June 27, 2025 (GLOBE NEWSWIRE) -- ReShape Lifesciences Inc. (Nasdaq: RSLS), the premier physician-led weight loss and metabolic health-solutions company, today announced that on June 23, 2025, it received formal notice from The Nasdaq Stock Market, LLC (“Nasdaq”) indicating that the Company has regained compliance with Nasdaq's stockholders equity requirement set forth in Nasdaq Listing Rule 5550(b)(1) and otherwise satisfies all other applicable criteria for continued listing on The Nasdaq Capital Market. As a result, the listing matter has been closed.
On May 28, 2025, Nasdaq notified the Company that its securities were subject to delisting from Nasdaq based on the Company’s continued non-compliance with Nasdaq Listing Rule 5550(b)(1), which requires companies listed on The Nasdaq Capital Market to maintain a minimum of $2.5 million in stockholders’ equity for continued listing.
As of March 31, 2025, the Company’s stockholders’ equity was $1.2 million. However (a) between June 3, 2025 and June 6, 2025, the Company sold 593,000 shares of common stock for gross proceeds of $3,642,564 pursuant to an equity distribution agreement with Maxim Group LLC in an “at-the-market” offering, as previously disclosed in the Company’s prospectus supplement filed with the Securities and Exchange Commission (“SEC”) on June 9, 2025 and (b) on June 9, 2025, the Company completed an offering of 1,054,604 shares of common stock for gross proceeds of $2,636,510, as previously disclosed in the Company’s Form 8-K filed with the SEC on June 12, 2025.
About ReShape Lifesciences®
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 vagal neuromodulation 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 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]
