Shares of Obalon Therapeutics Inc. OBLN,
Sixfold on Wednesday afternoon at massive volume, after the weight loss technologies company announced an agreement to merge with ReShape Lifesciences Inc. RSLS for weight loss solutions,
Shares of Obalon were up 503.4% towards their highest close since June 2019, while trading volume increased to 395.4 million shares, compared to the daily average of approximately 626,000 shares. The stock gained the most on Wednesday and was most active on the major US stock exchanges. Shares of ReShape, which are currently traded without a prescription, were up 155%. When the merger is completed, ReShape shareholders will own 51% of the combined entity and the company will be renamed Reshape Lifesciences Inc. and will be traded on the Nasdaq under the ticker symbol “RSLS.” “We are delighted with this opportunity to add Obalon’s FDA approved balloon system to ReShape’s line of minimally invasive weight loss solutions while expanding our market reach,” said ReShape Chief Executive Bart Bandy. Shares of Obalon are up 922.5% in the last three months, while shares of ReShape are up 187.3% and the S&P 500 SPX,
has gained 12.0%.