Shares of Obalon Therapeutics Inc. OBLN,
rose sixfold in mass volume in trading on Wednesday afternoon, after weight loss technology company announced a deal to merge with ReShape Lifesciences Inc. RSLS,
Obalon shares rose 503.4%, to the highest close since June 2019, while trading volume rose to 395.4 million shares, compared to today’s average complete with about 626,000 shares. The shares were the biggest winner and most active on major US stock markets on Wednesday. Shares of ReShape, which are currently listed without a prescription, rose 155%. When the merger is completed, ReShape’s shareholders will own 51% of the combined entity and the company will be renamed Reshape Lifesciences Inc. and will trade on the Nasdaq under the 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 reach in the marketplace,” said Bart Bandy, head ReShape executive. Obalon shares have now risen 922.5% in the last three months, while ReShape shares have risen 187.3% and the S&P 500 SPX,
has gained 12.0%.