Sec Form 13D Filing - ARMISTICE CAPITAL LLC filing for ReShape Weightloss Inc. (RSLS) - 2020-09-16

Daniel Radden

c/o Armistice Capital, LLC

510 Madison Avenue

7^th Floor

New York, NY 10022

Telephone Number: (212) 231-4930

(Name, Address and Telephone Number of Person Authorized to Receive

Notices and Communications)

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The name of the issuer is ReShape Lifesciences Inc., a Delaware corporation (the "Issuer"). The address of the Issuer's principal executive offices is 1001 Calle Amanecer, San Clemente, California 92673. This Amendment No. 5 to Schedule 13D relates to the Issuer's Common Stock, $0.001 par value per share (collectively, the "Shares").

Armistice Capital is an investment adviser registered with the Securities and Exchange Commission (the “SEC”) that is principally engaged in the business of providing investment management services to private investment vehicles, including the Master Fund. The principal business address of Armistice Capital is 510 Madison Avenue, 7^th Floor, New York, New York 10022.

The Master Fund is principally engaged in the business of investing in securities. The principal business address of the Master Fund is: c/o dms Corporate Services Ltd., 20 Genesis Close, P.O. Box 314, Grand Cayman KY1-1104, Cayman Islands. The board of directors of the Master Fund consists of Steven Boyd, Kevin A. Phillip and Gregory S. Bennett.

Steven Boyd is the managing member of Armistice Capital and a director of the Master Fund. Mr. Boyd’s business address is 510 Madison Avenue, 7^th Floor, New York, New York 10022.

On September 14, 2020, the Issuer and the Master Fund entered into a second amendment (the “Second Credit Agreement Amendment) to the credit agreement between the Issuer and the Master Fund dated March 25, 2020 and amended on March 31, 2020 (the “Credit Agreement”), which was summarized and incorporated by reference into the Schedule 13D/A filed by the Reporting Persons in respect of the Issuer on April 1, 2020. The Second Credit Agreement Amendment: (i) increases the amount available to the Issuer under delayed draw term loans set forth in the Credit Agreement by $2 million; and (ii) extends the maturity date of the loans outstanding under the Credit Agreement from September 24, 2020 to March 31, 2021.

To induce the Master Fund to enter into the Second Credit Agreement Amendment, the Issuer issued to the Master Fund on September 14, 2020 series G warrants (the “Series G Warrants”) to purchase an aggregate of 1,200,000 Shares pursuant to the Issuer’s Series G Common Stock Purchase Warrant (the “Series G Common Stock Purchase Warrant”). The Series G Warrants: (i) are currently exercisable and have a term of five years from the initial exercise date; and (ii) have an exercise price of $3.25 per Share, subject to adjustment pursuant to cashless exercise provisions and other terms set forth in the Series G Common Stock Purchase Warrant.

The foregoing was a summary of certain material terms of the: (i) Second Credit Agreement Amendment; and (ii) Series G Common Stock Purchase Warrant. The foregoing descriptions are not, and do not purport to be, complete and, except as otherwise described above, are qualified in their entirety by reference to the full text of the forms of those documents, which have been filed as Exhibits C and D, respectively, and are incorporated herein by reference.

The Reporting Persons purchased the Shares for investment in the ordinary course of their investment activities based on the Reporting Persons’ belief that the Shares, when purchased, were undervalued and represented an attractive investment opportunity. The Reporting Persons intend to review their investment in the Issuer on a continuing basis. Depending on various factors including, without limitation, the Issuer’s financial position, the price levels of the Shares, conditions in the securities markets and general economic and industry conditions, the Reporting Persons may in the future take such actions with respect to their investment in the Issuer as they deem appropriate including, without limitation, participating on the Issuer’s board of directors (the “Board”), engaging in communications with management and/or the Board, engaging in discussions with stockholders of the Issuer and others about the Issuer and the Reporting Persons’ investm ent, reshaping the Issuer's corporate strategy, recommending business development transactions, proposing changes to management, operations and the structure of the Board (including the composition of the Board), purchasing additional Shares, selling some or all of their Shares, engaging in short selling of or any hedging or similar transaction with respect to the Shares, or changing their intention with respect to any and all matters referred to in subparagraphs (a) - (j) of Item 4 of Schedule 13D.

Except as otherwise set forth herein, the Reporting Persons do not have any present plans or proposals which would relate to, or result in, the matters set forth in subparagraphs (a) – (j) of Item 4 of Schedule 13D. However, subject to market conditions and in compliance with applicable securities laws, the Reporting Persons reserve the right, at a later date, to effect one or more of such changes or transactions in the number of Shares they may be deemed to beneficially own in open-market or privately negotiated transactions, on such terms and at such times as the Reporting Persons may deem advisable.

As of the date hereof, each of the Reporting Persons may be deemed to be the beneficial owner of 12,962,100 Shares, constituting 97.9% of the Shares, based upon 13,236,554 Shares outstanding as of the date hereof, as adjusted for warrants of the Issuer beneficially owned by the Reporting Persons. Each of the Reporting Persons has the sole power to vote or direct the vote of 0 Shares and the shared power to vote or direct the vote of 12,962,100 Shares. Each of the Reporting Persons has the sole power to dispose or direct the disposition of 0 Shares and the shared power to dispose or direct the disposition of 12,962,100 Shares.

The Master Fund acquired Series G Warrants in connection with the Second Credit Agreement Amendment as described in Item 4 above. The other transactions in the Shares by the Reporting Persons since the last Schedule 13D/A filed by the Reporting Persons in respect of the Issuer are set forth on Exhibit B. All of the reported transactions set forth on Exhibit B were open-market transactions entered into by the Master Fund.

(e)

N/A

The information set forth in Item 4 above is incorporated by reference in its entirety in this Item 6. The Reporting Persons do not have any contract, arrangement, understanding or relationship with any person with respect to securities of the Issuer that is not described herein or in a prior Schedule 13D filed by the Reporting Persons in respect of the Issuer.

Form of Series G Common Stock Purchase Warrant, dated September 14, 2020 (incorporated by reference to Exhibit 10.2 to the Form 8-K filed with the SEC by the Issuer on September 15, 2020)

Name: Steven Boyd

Title: Managing Member

Name: Steven Boyd

Title: Director

Name: Steven Boyd

Title: Managing Member

Name: Steven Boyd

Title: Director