RSLS - ReShape Lifesciences stock plunges after pricing $10.2M securities offering

ReShape Lifesciences ( NASDAQ: RSLS ) shares plummeted 62% premarket on Monday after the health solutions company priced its upsized $10.2M securities offering .

The offering comprises 1,275,000 units, with each unit consisting of one share of common stock, or one pre-funded warrant to purchase one share of common stock, and one warrant to purchase one and one-half shares of common stock.

The warrants in the units will be immediately exercisable at a price of $8/share and will expire five years from the date of issuance.

Each warrant will become exercisable for 0.75 shares of common stock under the cashless exercise provision included in the common warrants rather than the 1.5 shares of common stock under the cash exercise provision.

Underwriters have been granted an option to purchase an additional 191,250 shares of common stock and/or additional warrants to purchase up to 286,875 shares of common stock, to cover over-allotments, if any.

Gross proceeds are expected to be ~$10.2M; net proceeds will be used to continue implementation of its growth strategies, for working capital and general corporate purposes.

The offering is expected to close on February 8, 2023.

For further details see: