ReShape Lifesciences (NSDQ:RSLS) said today it inked a $6 million private placement of Series D convertible preferred stock and warrants with an institutional investor, with funds slated to support further product development and commercialization.
Units of the Series D convertible preferred stock are convertible into an aggregate of 8 million shares of common stock at a conversion price of 75¢ per share, while warrants offered will have a one-year term and will be exercisable for 35 million shares at an exercise price of 75¢ per share.
San Clemente, Calif.-based ReShape Lifesciences said it expects to receive $5.3 million after fees and expenses, but could be eligible for an additional $26.3 million in gross proceeds if warrants are exercised in full.
Exercising of the warrants would require shareholder approval, ReShape Lifescience specified, which it will request at its 2018 annual shareholder’s meeting, according to a press release.
Last month, ReShape Lifesciences said it plans to cut operating expenses by roughly 25%.