Maxim Labkowski
ReShape Lifesciences Inc. SharesNASDAQ:RSLSShares of Philips Medical Devices Inc. rose in early trading Tuesday after the medical device maker reached a merger agreement to combine with specialty drugmaker Vyome Therapeutics in an all-stock deal.
Under the terms of the deal, ReShape (RSLS) is currentlyShareholders will own approximately 11.1% of the combined company, which will be called Vyome Holdings and is expected to trade under the symbol “HIND” on the Nasdaq.
The new entity’s board of directors will consist of six directors from Vyome and one director from ReShape (RSLS). It is expected to be run by Vyome executives.
The companies said certain accredited investors have already agreed to purchase up to $5.8 million of shares in 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 previously participated in an exclusive licensing deal for the company’s Obalon Gastric Balloon System.
Under the agreement, Biorad will acquire most of the assets and liabilities of ReShape (RSLS) for $5.16 million in cash.