Obalon Therapeutics skyrockets 568% after announcing merger with weight-loss company ReShape Lifesciences
Obalon Therapeuticsskyrocketed 568% on news it's merging with fellow weight-loss company ReShape Lifesciences.
- Trading volume of the stock soared to 370 million shares, higher than the stock's average 4.2 million.
- The two companies will combine their minimally invasive weight-loss technologies.
- Watch Obalon Therapeutics trade live here.
Shares of medical technology company Obalon Therapeutics exploded 568% to as high as $10.71 on Wednesday following a merger announcement with weight-loss company ReShape Lifesciences.
Obalon's stock reached an intraday high of $10.77 around 2:00 pm ET Wednesday, a 568% upside from Tuesday's closing price of $1.61. Trading volume of the stock soared to 370 million shares, compared to the average volume of 4.2 million shares traded per day.
Meanwhile, ReShape Lifesciences grew as much as 250% to $14 on Wednesday.
Read more:Darren Chervitz is crushing other fund managers in one of the riskiest parts of the market: small biotech stocks. He tells us how he scores the biggest gains, minimizes the risk of costly failures, and names his top 2 picks in the space.
San Diego-based Obalon developed the first and only FDA-approved swallowable, gas-filled intragastric balloon system for the treatment of obesity. In a press release, ReShape CEO Bart Bandy said Obalon's Balloon System will be added to to ReShape's line of minimally invasive weight-loss solutions.
The two companies will combine in an all-stock transaction and will trade under the NASDAQ ticker symbol "RSLS." Existing ReShape stockholders will have majority ownership of the combined company, which will be named ReShape LifeSciences Inc, immediately following the closing of the merger.
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