Maksim Labkouski
Shares of ReShape Lifesciences (NASDAQ:RSLS) climbed in the premarket Tuesday after the medical device maker reached a merger agreement to combine with privately held specialty pharma company Vyome Therapeutics in an all-stock transaction.
Per the terms of the deal, current ReShape (RSLS) stockholders will own a roughly 11.1% stake in the combined company, which will be named Vyome Holdings and expected to trade under the ticker symbol “HIND” on Nasdaq.
The newly formed entity’s board of directors will consist of six Vyome directors and one ReShape (RSLS) director. It is expected to be run by Vyome’s executive officers.
The companies said certain accredited investors have already agreed to purchase up to $5.8M in shares of the combined entity immediately after the transaction.
In conjunction with the M&A deal, Irvine, California-based ReShape (RSLS) has agreed to sell most of its assets to Biorad Medisys. The MedTech had previously participated in an exclusive licensing deal for the company’s Obalon Gastric Balloon System.
Under the agreement, Biorad will own most of ReShape’s (RSLS) assets and liabilities for $5.16M in cash.