ReShape Lifesciences anticipates closing the previously announced merger with Obalon Therapeutics to occur promptly after approval of their pending Nasdaq listing application. While there can be no assurance that the listing application will be approved, Nasdaq approval is the sole remaining condition to closing in the merger agreement (other than conditions that the parties anticipate being satisfied at the closing).
Upon the closing of the merger, shares of common stock of the combined company are expected to commence trading on The Nasdaq Capital Market under the name ReShape Lifesciences Inc. and the trading symbol "RSLS."
At a special meeting of stockholders of ReShape held on May 13, 2021, ReShape's stockholders approved the merger and the other transactions contemplated by the definitive merger agreement. At a special meeting of stockholders of Obalon held on May 25, 2021, Obalon's stockholders approved the issuance of shares of Obalon's common stock to the stockholders of ReShape and an amendment to Obalon's certificate of incorporation to authorize the Obalon board of directors to effect a reverse stock split.
After giving effect to the merger, Obalon stockholders will own approximately 49% of the stock of the combined company, and as a result, Obalon stockholders would have the opportunity to participate in any future growth of the combined company after the consummation of the merger.