Closing on Recent Financings Resulting in $25 Million in Gross Proceeds
Company Funded to Support Current Operations Into 2020
SAN CLEMENTE, CA / ACCESSWIRE / November 28, 2018 / ReShape Lifesciences Inc. (Nasdaq: RSLS), a developer of minimally invasive medical devices to treat obesity and metabolic diseases, today announced a corporate update highlighting recent company accomplishments:
- Completion of previously announced $10 million registered direct offering.
- Raising of an aggregate of $15 million pursuant to the Company's at-the-market facility since the commencement of the at-the-market facility in October 2018.
As a result of the aggregate $25 million in gross proceeds raised in these recent financings and the Company's continued efforts to manage its expenses, the Company believes that it should have sufficient capital to fund its current operations into 2020.
"We are really pleased with the progress we have made in getting our capital structure back to health," said Dan Gladney, Chief Executive Officer and Chairman of the Board of ReShape Lifesciences. "We believe that the completion of these recent financings combined with the previous series of financings, the elimination of the series D convertible preferred shares and the reduction of our monthly burn rate from $3.5 million to $1.5 million, position ReShape Lifesciences with a solid runway to execute our strategic plan."
About ReShape Lifesciences Inc.
ReShape Lifesciences™ is a medical device company focused on technologies to treat obesity and metabolic diseases. The FDA-approved ReShape Balloon™ System involves a non-surgical weight loss procedure that uses advanced balloon technology designed to take up room in the stomach to help people with a 30-40 kg/m2 Body Mass Index (BMI) and at least one co-morbidity lose weight. The ReShape Vest™ System is an investigational, minimally invasive, laparoscopically implanted medical device that wraps around the stomach, emulating the gastric volume reduction effect of conventional weight-loss surgery, and is intended to enable rapid weight loss in obese and morbidly obese patients without permanently changing patient anatomy.
Forward-Looking Safe Harbor Statement:
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this release include statements regarding the anticipated use of proceeds from the financings and that those proceeds will be sufficient to fund the Company's current strategic plan into 2020. These forward-looking statements generally can be identified by the use of words such as "expect," "plan," "anticipate," "could," "may," "intend," "will," "continue," "future," other words of similar meaning and the use of future dates. These forward-looking statements are based on the current expectations of our management and involve known and unknown risks and uncertainties that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others: statements relating to the completion, size and use of proceeds of the registered direct offering that involve risks and uncertainties, including, without limitation, risks and uncertainties related to market conditions and the satisfaction of closing conditions related to the registered direct offering, risks and uncertainties related to our acquisitions of ReShape Medical, Inc. and BarioSurg, Inc.; risks related to the U.S. Food and Drug Administration's announcement, including updates thereto, to alert health care providers of unanticipated deaths involving the ReShape Balloon; our proposed ReShape Vest product may not be successfully developed and commercialized; our ability to continue as a going concern if we are unsuccessful in our pursuit of various funding options; our limited history of operations; our losses since inception and for the foreseeable future; our limited commercial sales experience; the competitive industry in which we operate; our ability to maintain compliance with the Nasdaq continued listing requirements; our dependence on third parties to initiate and perform our clinical trials; the need to obtain regulatory approval for our ReShape Vest and any modifications to our vBloc system or ReShape Balloon; physician adoption of our products; our ability to obtain third party coding, coverage or payment levels; ongoing regulatory compliance; our dependence on third party manufacturers and suppliers; the successful development of our sales and marketing capabilities; our ability to raise additional capital when needed; international commercialization and operation; our ability to attract and retain management and other personnel and to manage our growth effectively; potential product liability claims; the cost and management time of operating a public company; potential healthcare fraud and abuse claims; healthcare legislative reform; and our ability to obtain and maintain intellectual property protection for our technology and products. These and additional risks and uncertainties are described more fully in the Company's filings with the Securities and Exchange Commission, particularly those factors identified as "risk factors" in our annual report on Form 10-K filed April 2, 2018 and subsequent quarterly reports on Form 10-Q. We are providing this information as of the date of this press release and do not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise, except as required by law.
CONTACT:
Investor Contact:
Scott Youngstrom
Chief Financial Officer
ReShape Lifesciences Inc.
949-429-6680 x106
[email protected]
or
Debbie Kaster
Investor Relations
Gilmartin Group
415-937-5403
[email protected]
SOURCE: ReShape Lifesciences Inc.