Just days after it announced that it had raised $10 million in a registered direct offering, ReShape Lifesciences (NSDQ:RSLS) disclosed in a regulatory filing that it’s paying $350,000 to each of the two institutional investors involved.
The U.S. Securities and Exchange Commission filing, dated yesterday, said the money settles a dispute that arose prior to the closing of the registered direct offering.
The two investors agreed to buy 8 million shares of ReShape common stock as well as warrants to purchase 8 million shares, at a purchase price of $1.25 per share, according to a previous news release. H.C. Wainwright & Co. acted as the exclusive placement agent.
On top of the $10 million raised in the registered direct offering, the weight loss device maker has also brought in $15 million related to an at-the-market facility that commenced in October.
“We are really pleased with the progress we have made in getting our capital structure back to health,” ReShape CEO Dan Gladney said in a news release yesterday.
“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,” Gladney said.
This isn’t the first time this year that ReShape has run into troubles with a money raise. In August, the company disclosed that it withdrew from an underwriting agreement with H.C. Wainwright & Co. because Nasdaq determined that the offering was not a public offering and therefore could not be completed without shareholder approval.
The company’s stock has been trading under $1 per share in recent days.
ReShape (San Clemente, Calif.) has been developing minimally invasive medical devices to treat obesity and metabolic diseases. Its portfolio includes the ReShape Balloon, ReShape vBloc, and ReShape Vest.