ReShape Lifesciences (RSLS) Stock: Climbing On Financial Update

0
616

ReShape Lifesciences Inc (NASDAQ: RSLS) is headed for the top in the pre-market trading hours this morning, and for good reason. The company provided a financial update, exciting investors and sending the stock on a run for the top. Today, we’ll talk about

  • The update;
  • what we’re seeing from RSLS stock as a result; and
  • what we’ll be watching for ahead.

RSLS Announces Corporate And Financial Update

As mentioned above, ReShape Lifesciences is having a strong start to the trading session in the pre-market hours this morning after providing an update. In a press release issued early this morning, the company had the following to offer:

First and foremost, the company announced that it had completed the $10 million registered direct offering that was recently announced. The company also said that it has raised $15 million through its at-the-market facility since the commencement back in October.

RSLS said that as a result of the aggregate $25 million in gross proceeds raised, as well as the company’s continued work to reduce expenses, it believes that it has enough capital to fund operations into the year 2020.

In a statement, Dan Gladney, CEO and Chairman at RSLS, had the following to offer:

We are really pleased with the progress we have made in getting our capital structure back to health… 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.

What We’re Seeing From The StockĀ 

As investors, one of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of ReShape Lifesciences, the news proved to be overwhelmingly positive. After all, while the financing was dilutive, we saw the reaction from that when it was announced. At the end of the day, these dilutive moves led to the company’s ability to get through 2019 and possibly beyond without need for extra funding. So, it’s not surprising that excited investors are sending the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:12), RSLS is trading at $0.91 per share after a gain of $0.075 per share or 8.98% thus far today.

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

What We’ll Be Watching For Ahead

Moving forward, the iWatch Markets team will continue to keep a close eye on RSLS. In particular, we’re interested in following the company’s continued development of its vBloc technology, as well as the use of the $25 million in funds the company generated through offerings. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

Never Miss The News Again

Do you want real-time, actionable news delivered to your inbox? Join the iWatch Markets mailing list below!

Subscribe Today!

* indicates required


LEAVE A REPLY

Please enter your comment!
Please enter your name here