These Small Caps Are Ripping On Merger Announcement

These Small Caps Are Ripping On Merger Announcement

By: Dylan Sikes – AllPennyStocks.com News

Wednesday, January 20, 2021

When a merger is announced involving two public companies, sometimes there is a clear winner and a clear loser depending on the terms of the deal, using the price action of both securities as a gauge of optimism from investors. Today, a rare event happened as both sides of the merger saw a surge in share price after Obalon Therapeutics Inc. (NASDAQ:OBLN) and Reshape Lifesciences Inc. (OTCQB:RSLS) announced an all-stock merger. 

Obalon Therapeutics Inc. is a medical device company that focuses on developing and commercializing medical devices to treat obese and overweight people by facilitating weight loss. Its product includes Obalon Balloon System. Geographically, it derives a majority of revenue from the United States.

Reshape Lifesciences Inc. is a developer of minimally invasive medical devices to treat obesity and metabolic diseases. Its operating segments include the Lap-Band and ReShape Vest. The company's current portfolio includes the LAP-BAND Adjustable Gastric Banding System and the ReShape VestTM, an investigational device, to help treat more patients with obesity.

Traders seemed to have an optimistic view of the merger, as shares of both stocks soared after the announcement. Reshape shares hit a session high of $13.00/share (+225%) and Obalon shares rocketed up to $9.70/share (+502%).


Copyright © 2021 AllPennyStocks.com. All rights reserved. Republication or redistribution of AllPennyStocks.com's content is expressly prohibited without the prior written consent of AllPennyStocks.com. AllPennyStocks.com shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Other Penny Stock Movers

With Inflation Expectations Rising, Junior Miners Could Be Setting Up For A Major Bullish Rally
California Company Expecting Expansion
Micro Cap Tech Firm Announces New Global Customers
Most Popular
FREE Newsletter
AllPennyStocks.com Favorites


Back to Top