ReShape Lifesciences shares plunge on Q2 release, withdrawn offering

Shares in ReShape Lifesciences (NSDQ:RSLS) have fell 30% today after the weight loss device maker posted second quarter earnings that missed expectations on Wall Street and announced it terminated plans for an upcoming offering.

The San Clemente, Calif.-based company posted losses of $35.3 million, or $14.23 per share, on sales of $653,369 for the three months ended June 30, seeing losses grow 415.3% while sales grew 602.1% compared with the same period last year.

Losses per share were significantly behind the $1.79 consensus on Wall Street.

“We have made a lot of meaningful progress this quarter at ReShape, with particular success in our product development efforts as we advance our platform for future use and applications in additional large markets such as type 2 diabetes. Despite cutbacks and reductions in our teams, our sales force also really stepped up and increased productivity substantially in the quarter.  We remain confident in our ability to establish our products as the standard of care for obesity,” prez & CEO Dan Gladney said in a press release.

In an SEC filing posted late last week, ReShape said it withdrew an underwriting agreement from August 7 with H.C. Wainwright & Co. for an offering of hsares of the company’s common stock.

The company said the agreement was “terminated by the Underwriter in accordance with its terms due to Nasdaq’s determination that the offering was not a public offering under the Nasdaq rules, and therefore could not be completed without shareholder approval.”

As a result, ReShape Lifesciences said it does not plan to offer any shares of stock in the offering, according to an SEC filing.

Shares in ReShape Lifesciences fell 33.4% today, closing at 8¢. A year ago, the company’s shares opened at $29.25.

In July, ReShape Lifesciences said that it inked a private placement deal worth approximately $2.6 million.

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