Funding provides for the acceleration of its internal growth strategy and the continued development of Reshape's weight-loss portfolio
SAN CLEMENTE, CA / ACCESSWIRE / June 30, 2021 / ReShape Lifesciences Inc. (NASDAQ:RSLS), a global physician-led weight-loss and metabolic health solutions company, today provided additional information about its previously announced warrant exercise agreement with existing accredited investors for approximately $46 million in gross proceeds. The company is currently anchored by the Lap-Band® System with over 1,000,000 worldwide placements and the company's recently launched reshapecare™ virtual health program, both reimbursed through major insurance carriers.
ReShape plans to use the proceeds from the transaction to expand patient direct marketing activities, advance their internal product pipeline and general corporate purposes. Additionally, the company will repay in full the outstanding principal and accrued interest under its secured credit agreement dated March 25, 2020.
"We are highly encouraged by the momentum we have achieved thus far in 2021 through our recent listing on The Nasdaq Capital Market, merger with Obalon and this empowering capital investment. Our strategic execution has afforded us the opportunity to grow our financial visibility, eliminate debt overhang and optimize our ability to focus on key growth priorities. With this bolstered financial position and an expanded portfolio of innovative weight loss products and services, we look forward to the second half of 2021 being a truly transformative time for ReShape," said Bart Bandy, President and Chief Executive Officer of ReShape LifeSciences.
"This significant infusion of funding in combination with our continued focus on a conservative spending approach places the company in an ideal position to consider and execute strategic initiatives geared towards growth," commented Thomas Stankovich, Chief Financial Officer of ReShape Lifesciences. "Now, with a strengthened balance sheet and a fully shielded IP portfolio, we are poised to drive commercial operations that can capture an even greater share of the growing weight-loss market while maintaining our focus on increasing shareholder value."
Maxim Group LLC acted as the exclusive placement agent for the transaction.
About ReShape Lifesciences Inc.
ReShape Lifesciences is America's premier weight-loss 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 ReShape Vest™ System is an investigational (outside the U.S.) minimally invasive, laparoscopically implanted medical device that wraps around the stomach, emulating the gastric volume reduction effect of conventional weight-loss surgery. It helps enable rapid weight loss in obese and morbidly obese patients without permanently changing patient anatomy. The recently launched reshapecare™ virtual health coaching program is a virtual telehealth weight management program that supports lifestyle changes for all weight-loss patients, to help them keep the weight off over time.
Forward-Looking Safe Harbor Statement:
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by the use of words such as "expect," "plan," "anticipate," "could," "may," "intend," "will," "continue," "future," other words of similar meaning and the use of future dates. Forward-looking statements in this press release include statements about the company's intended use of proceeds from the transaction and the company's strategic initiatives going forward. These forward-looking statements are based on the current expectations of our management and involve known and unknown risks and uncertainties that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the risks identified under the heading "Risk Factors" in ReShape's Annual Report on Form 10-K, which was filed with the SEC on March 11, 2021, and Obalon Therapeutics, Inc.'s Annual Report on Form 10-K, filed with the SEC on March 12, 2021, as well as both companies' subsequent Quarterly Reports on Form 10-Q and other information filed by each company with the SEC. These and additional risks and uncertainties are described more fully in ReShape's and Obalon's filings with the SEC. We are providing this information as of the date of this press release and do not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise, except as required by law.
Company Contact:
Thomas Stankovich
Chief Financial Officer
ReShape Lifesciences Inc.
949-276-6042
tstankovich@ReShapeLifesci.com
Investor Contacts:
James Salierno/Daniel Kontoh-Boateng
Vice President
The Ruth Group
646-536-7028/7019
jsalierno@theruthgroup.com
dboateng@theruthgroup.com
SOURCE: ReShape Lifesciences Inc.
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