These are top 10 stocks traded on the Robinhood UK platform in July
IRVINE, Calif. - ReShape Lifesciences Inc. (NASDAQ:RSLS), a company specializing in weight loss and metabolic health solutions with annual revenue of $8.01 million, has declared a reverse stock split of its common stock at a ratio of 1-for-25, to take effect at the start of trading on May 9, 2025. This action will consolidate every 25 shares of existing common stock into one share. According to InvestingPro data, the company’s stock has shown significant volatility, with a 91.7% decline over the past six months.
The reverse stock split, approved by shareholders on April 1, 2025, will also proportionally adjust the terms of the company’s outstanding warrants, stock options, and convertible preferred stock. Fractional shares resulting from the split will be rounded up to the next whole share, while the total number of authorized shares under the company’s certificate of incorporation will remain unchanged.
ReShape Lifesciences, known for its FDA-approved Lap-Band System and other non-surgical weight loss technologies, aims to manage and treat obesity and metabolic diseases. Despite maintaining a gross profit margin of 63.2%, the company reported negative EBITDA of $6.65 million in the last twelve months. The company’s investigational Diabetes Bloc-Stim Neuromodulation system is currently under review for the treatment of type 2 diabetes.
Stockholders of ReShape Lifesciences will receive instructions from Equiniti Trust Company, the transfer agent, regarding the procedure for exchanging their current stock certificates for new certificates or book-entry shares reflecting the reverse stock split. The new CUSIP number for the company’s common stock post-split will be 76090R408.
This announcement is based on a press release statement from ReShape Lifesciences Inc.
In other recent news, ReShape Lifesciences has reported a significant decrease in revenue and gross profit for the fiscal year 2024, with revenue dropping by 8% to $8 million and gross profit falling by 9% to $5.1 million. Despite these declines, the company implemented a disciplined cost reduction strategy, achieving a 42% reduction in operating costs. Additionally, ReShape Lifesciences has entered into an asset purchase agreement with Biorad Medisys, selling most of its assets, including the Lap-Band® and Obalon® systems. In another development, the company has renegotiated an asset purchase agreement with Ninjour Health International, reducing the exercise price from $5.16 million to $2.25 million and extending the termination date to June 30, 2025. Furthermore, ReShape Lifesciences has been granted patents for both its intragastric balloon system and Diabetes Neuromodulation technology, enhancing its intellectual property portfolio. The company is also focusing on expanding its product portfolio and international distribution, having signed an exclusive agreement with Motion Informatics for neuromuscular rehabilitation devices. These developments reflect ReShape Lifesciences’ strategic maneuvers amid competitive pressures and its efforts to maintain a robust market presence.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.