Allurion Receives Continued Listing Standards Notice from NYSE

Rhea-AI Summary

Allurion Technologies (NYSE: ALUR) has received a notice from the New York Stock Exchange (NYSE) regarding non-compliance with continued listing standards. The company's average closing stock price fell below $1.00 over a 30-day trading period ending August 8, 2024. Allurion has a six-month cure period to regain compliance by achieving a closing share price and 30-day average closing price of at least $1.00.

The company intends to remain listed on the NYSE and is considering options to regain compliance, including a potential reverse stock split subject to stockholder approval. The notice does not result in immediate delisting, and Allurion's stock will continue to trade on the NYSE during the cure period, provided it meets other listing standards. This development is not expected to impact Allurion's ongoing business operations or SEC reporting requirements.

Positive

• Company has a six-month cure period to regain compliance
• Stock continues to trade on NYSE during cure period
• No immediate impact on business operations or SEC reporting requirements

Negative

• Average closing stock price fell below $1.00 over 30-day period
• Non-compliance with NYSE continued listing standards
• Potential for delisting if compliance is not regained
• May need to implement a reverse stock split, which could impact shareholders

Insights

Financial Analyst

Allurion's receipt of a NYSE continued listing standards notice is a concerning development for investors. The company's stock price falling below $1.00 for an extended period signals significant market skepticism about its current valuation and future prospects. While not an immediate cause for delisting, this situation puts additional pressure on Allurion to improve its financial performance and investor perception.

The company's stated intention to cure the deficiency is standard procedure, but the methods mentioned, particularly a potential reverse stock split, are often viewed negatively by the market. Such moves can be seen as artificial price manipulation without addressing underlying business issues. Investors should closely monitor Allurion's financial health, cash position and growth strategies in the coming months to assess the company's ability to organically improve its stock price and market standing.

Market Research Analyst

Allurion's listing issue reflects broader challenges in the obesity treatment market. Despite the growing global obesity epidemic, many companies in this space struggle to achieve consistent profitability and investor confidence. Allurion's innovative non-surgical weight loss solutions face competition from both established pharmaceutical companies and other medical device manufacturers.

The market's current valuation of Allurion below $1 per share suggests skepticism about its growth trajectory and ability to capture significant market share. Investors should consider Allurion's unique value proposition, its market penetration strategies and comparative effectiveness of its solutions against emerging obesity treatments. The company's ability to demonstrate clinical efficacy, cost-effectiveness and scalability will be important in reversing negative market sentiment and avoiding further listing complications.

NATICK, Mass.--(BUSINESS WIRE)-- Allurion Technologies, Inc. (NYSE: ALUR) (“Allurion” or the “Company”), a company dedicated to ending obesity, today announced that it received written notice (the “Notice”) from the New York Stock Exchange (the “NYSE”) that it is not in compliance with the NYSE’s continued listing standards because the average closing price of the Company’s common stock per the Notice was less than $1.00 per share over the consecutive 30 trading-day period ended August 8, 2024. The Notice does not result in the immediate delisting of the Company’s common stock from the NYSE.

In accordance with applicable NYSE rules, the Company plans to timely notify the NYSE that it intends to cure the stock price deficiency and return to compliance with the applicable NYSE continued listing standards. The Company can regain compliance at any time within a six-month cure period following its receipt of the Notice if, on the last trading day of any calendar month during such cure period, the Company has both: (i) a closing share price of at least $1.00 and (ii) an average closing share price of at least $1.00 over the 30 trading-day period ending on the last trading day of the applicable calendar month.

The Company intends to remain listed on the NYSE and is considering all available options to regain compliance with the NYSE’s continued listing standards, including, but not limited to, a reverse stock split, subject to stockholder approval. The NYSE rules provide for an extension to the six-month cure period if the action required to cure the price condition requires stockholder approval, in which case, the action needs to be approved by no later than the Company’s next annual stockholder’s meeting and implemented promptly thereafter.

The Notice has no immediate impact on the listing of the Company’s common stock, which will continue to be listed and traded on the NYSE during such cure period, subject to the Company’s compliance with other NYSE continued listing standards. Furthermore, the Notice is not anticipated to impact the ongoing business operations of the Company or its reporting requirements with the U.S. Securities and Exchange Commission.

About Allurion

Allurion is dedicated to ending obesity. The Allurion Program is a weight loss platform that features the Allurion Gastric Balloon, the world’s first and only swallowable, Procedureless™ intragastric balloon for weight loss, and offers access to the Allurion Virtual Care Suite, including the Allurion Mobile App for consumers, Allurion Insights for health care providers featuring the Coach Iris AI Platform, and the Allurion Connected Scale. The Allurion Virtual Care Suite is also available to providers separately from the Allurion Program to help customize, monitor and manage weight loss therapy for patients regardless of their treatment plan: gastric balloon, surgical, medical or nutritional. The Allurion Gastric Balloon is an investigational device in the United States.

For more information about Allurion and the Allurion Virtual Care Suite, please visit www.allurion.com.

Allurion is a trademark of Allurion Technologies, Inc. in the United States and countries around the world.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the U.S. federal and state securities laws. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions and include statements regarding the Company’s plans to notify the NYSE that it intends to cure the stock price deficiency and return to compliance with the applicable NYSE continued listing standards, its intention to remain listed on the NYSE, and its options to regain compliance with the NYSE’s continued listing standards, including, but not limited to, a reverse stock split, subject to stockholder approval. Forward-looking statements are predictions, projections and other statements about future events that reflect the current beliefs and assumptions of the Company’s management based on information currently available to them and, as a result, are subject to risks and uncertainties. Many factors could cause actual future results or developments to differ materially from the forward-looking statements in this communication, including but not limited to (i) the ability of the Company to obtain and maintain regulatory approvals for and successfully commercialize its products and offerings, including the Allurion Balloon, (ii) the timing of, and results from, the Company’s clinical studies and trials, (iii) the evolution of the markets in which the Company competes, (iv) the ability of the Company to defend its intellectual property and satisfy regulatory requirements, (v) the impact of global economic conditions and geopolitical events on the Company’s business, (vi) the Company’s expectations regarding its market opportunities, (vii) the risk of economic downturns and a changing regulatory landscape in the highly competitive industry in which the Company operates, (viii) the risk that the Notice and noncompliance with NYSE continued listing standards may impact the Company’s results of operations, business operations and reputation and the trading prices and volatility of the Company’s common stock, and (ix) the Company’s ability to continue to meet NYSE continued listing standards. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of the Company’s Annual Report on Form 10-K filed on March 26, 2024 (as subsequently amended) and other documents filed by the Company from time to time with the U.S. Securities and Exchange Commission. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. The Company does not give any assurance that it will achieve its expectations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240815795637/en/

Global Media

Cedric Damour

PR Manager

+33 7 84 21 02 20

cdamour@allurion.com

Investor Contact

Mike Cavanaugh, Investor Relations

ICR Westwicke

(617) 877-9641

mike.cavanaugh@westwicke.com

Source: Allurion Technologies, Inc.

FAQ

Why did Allurion Technologies (ALUR) receive a notice from NYSE?

Allurion Technologies (ALUR) received a notice from NYSE because its average closing stock price was below $1.00 for 30 consecutive trading days, violating continued listing standards.

What is the deadline for Allurion (ALUR) to regain compliance with NYSE standards?

Allurion (ALUR) has a six-month cure period from the date of the notice to regain compliance with NYSE listing standards by achieving a $1.00 closing share price and 30-day average.

What options is Allurion (ALUR) considering to regain NYSE compliance?

Allurion (ALUR) is considering various options to regain NYSE compliance, including the possibility of a reverse stock split, which would require stockholder approval.

Will Allurion's (ALUR) stock continue to trade on NYSE during the cure period?

Yes, Allurion's (ALUR) stock will continue to trade on NYSE during the cure period, provided the company complies with other NYSE continued listing standards.