Shares of Obalon Therapeutics Inc. OBLN,
rose sixfold in massive trading volume on Wednesday afternoon after slimming technology company announced a merger deal with slimming solutions company ReShape Lifesciences Inc. RSLS,
Obalon’s shares increased by 503.4% to the largest close since JUNE 2019, while the volume of transactions increased to 395.4 million shares, compared to the all-day average of about 626,000 shares. The stock was the biggest winner and most active on major US stock markets on Wednesday. ReShape shares, which are currently traded over the counter, increased by 155%. Upon completion of the merger, ReShape 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 the FDA-approved Balloon System Obalon to ReShape’s line of minimally invasive weight loss solutions, while expanding our market coverage,” said ReShape CEO Bart Bandy. 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,
gained 12.0%.