ReShape Lifesciences completes $ 46 million capital increase with major institutional shareholders

The funding will accelerate its internal growth strategy and further develop Reshape’s weight loss portfolio

SAN CLEMENTE, CA / ACCESSWIRE / June 30, 2021 / ReShape Lifesciences Inc. (NASDAQ: RSLS), a physician-led weight loss and metabolic health solutions company, today announced additional information on its previously announced option agreement with existing accredited investors for gross proceeds of approximately $ 46 million. The company is currently anchored through the Lap-Band® system with over 1,000,000 placements worldwide and the recently launched corporate transformationmaintenance™ virtual health program, both of which are reimbursed by major insurance carriers.

ReShape plans to use the proceeds from the transaction to expand direct marketing activities for patients, advance its internal product pipeline and general corporate purposes. In addition, the company will fully repay the principal amount outstanding and accrued interest under its secured loan agreement dated March 25, 2020.

“We are very encouraged by the momentum we have achieved in 2021 through our recent listing on the Nasdaq Capital Market, our merger with Obalon, and this empowering investment. Our strategic execution has given us the opportunity to increase our financial visibility and eliminate debt. ”Overhang and optimize our ability to focus on key growth priorities. With this strengthened 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 cash injection, combined with our continued focus on conservative spending, puts the company in an ideal position to consider and execute strategic growth initiatives,” said Thomas Stankovich, Chief Financial Officer of ReShape Lifesciences. “With a strengthened balance sheet and a fully shielded IP portfolio, we are now ready to pursue commercial activities that can capture an even bigger share of the growing weight loss market while we continue to focus on increasing shareholder value.”

The story goes on

Maxim Group LLC acted as the exclusive placement agent for the transaction.

About ReShape Lifesciences Inc.
ReShape Lifesciences is America’s leading weight loss solutions company, offering an integrated portfolio of proven products and services for the treatment and management of obesity and metabolic disorders. The FDA-approved Lap-Band® system offers a minimally invasive long-term treatment of obesity and is an alternative to more invasive surgical stapling procedures such as gastric bypass or gastric sleeve removal. The ReShape Vest ™ System is a minimally invasive, laparoscopically implanted medical device that, in its trial phase (outside of the US), is placed around the stomach and mimics the gastric volume reduction effect of conventional weight loss surgery. It helps to enable fast weight loss in obese and morbidly obese patients without permanently changing the patient’s anatomy. The recently launched remodelmaintenance™ The Virtual Health Coaching Program is a telemedicine virtual weight management program that supports lifestyle changes for all weight loss patients to help them lose weight 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 may generally be intended through the use of words such as “expect,” “plan,” “anticipate,” “could,” “may,” “intend.” “,” will “,” continue “,” future “, other words with similar meanings and the use of future dates. Forward-looking statements in this press release include statements about the Company’s intended use of the proceeds from the transaction and the Company’s future strategic initiatives. These forward-looking statements are based on the current expectations of our management and involve known and unknown risks and uncertainties that could cause our actual results, performance or achievements to differ materially from future results, performance or achievements expressed or implied in the future -statement. These risks and uncertainties include, but are not limited to, the risks identified under the heading “Risk Factors” in ReShape’s Annual Report on Form 10-K, filed with the SEC on March 11, 2021, and in Obalon Therapeutics, Inc.’s annual report Form 10-K, filed with the SEC on March 12, 2021, as well as the subsequent quarterly reports of both companies on Form 10-Q and other information filed by each company with the SEC. These and other risks and uncertainties are further described in ReShape and Obalon’s filings with the SEC. We are providing this information as of the date of this press release and we assume no obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise, unless required by law.

Company contact:
Thomas Stankovich
CFO
ReShape Lifesciences Inc.
949-276-6042
[email protected]

Investor contacts:
James Salierno / Daniel Kontoh-Boateng
Vice President
The Ruth Group
646-536-7028 / 7019
[email protected]
[email protected]

SOURCE: ReShape Lifesciences Inc.

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