09:53 AM EDT, 07/09/2024 (MT Newswires) -- ReShape Lifesciences ( RSLS ) and Vyome Therapeutics said Tuesday they have signed a merger agreement under which ReShape and Vyome will combine in an all-stock deal.

Under the terms of the deal, ReShape shareholders will own about 11% of the combined company, subject to an adjustment based on ReShape's net cash at closing compared with a target net cash amount of $5 million.

After closing, ReShape will be renamed Vyome and is expected to trade on Nasdaq under the ticker "HIND." The board of the combined company will have six directors named by Vyome and one director named by ReShape.

Also, ReShape said it signed an asset purchase deal with Biorad Medisys under which it will sell its assets to Biorad, and Biorad will assume ReShape's liabilities, for a purchase price of about $5.2 million in cash, subject to adjustment.

ReShape, Vyome and a Vyome unit also signed deals with some existing investors under which the investors have committed to buy at least $7.3 million in securities of ReShape, Vyome and Vyome's unit.

Under the agreements, some investors have agreed to buy up to $5.8 million in shares of the combined company after completion of the merger, a value which may be upsized.

ReShape shares were more than 18% higher in recent trading.

Price: 0.28, Change: +0.07, Percent Change: +34.98