Allurion Receives Continued Listing Standards Notice from NYSE

Rhea-AI Summary

Allurion Technologies (NYSE: ALUR), a company focused on ending obesity, has received a continued listing standards notice from the New York Stock Exchange (NYSE). The notice indicates that Allurion is not in compliance with NYSE's listing standards due to its average market capitalization falling below $50 million over a 30-day trading period ending August 29, 2024, and its last reported stockholders' equity being less than $50 million.

Allurion has 45 days to submit a plan to the NYSE outlining actions to regain compliance. If accepted, the company will have an 18-month cure period to meet the standards, during which its stock will continue to trade on the NYSE, subject to compliance with other listing requirements and periodic reviews.

Positive

• Company has 45 days to submit a compliance plan to NYSE
• If plan is accepted, Allurion will have 18 months to regain compliance
• Stock continues to trade on NYSE during the cure period

Negative

• Average market capitalization fell below $50 million over 30-day period
• Stockholders' equity reported as less than $50 million
• Non-compliance with NYSE continued listing standards
• Risk of potential delisting if compliance is not achieved

Insights

Financial Analyst

The NYSE's notice to Allurion Technologies signals significant financial challenges for the company. With a market cap and stockholders' equity both below $50 million, Allurion faces a critical period to rectify its financial position. This situation often indicates cash flow issues or declining investor confidence. The 18-month cure period provides a lifeline, but Allurion must present a convincing turnaround plan within 45 days. Investors should closely monitor the company's ability to improve its financial metrics and maintain NYSE compliance. Failure to do so could result in delisting, potentially impacting stock liquidity and valuation. This development underscores the importance of robust financial health for public companies in maintaining their listing status.

Market Research Analyst

Allurion's struggle to meet NYSE listing standards reflects broader challenges in the obesity treatment market. Despite the growing global obesity epidemic, companies in this space often face lengthy development cycles and regulatory hurdles. Allurion's innovative gastric balloon technology shows promise, but the company's financial situation suggests potential difficulties in market penetration or reimbursement. This scenario highlights the gap between market potential and financial performance in emerging medical technologies. Investors should consider the long-term market dynamics of obesity treatments, balancing the significant opportunity against the financial risks evident in Allurion's current position. The company's ability to navigate this important period will be indicative of its long-term viability in a challenging but potentially lucrative market.

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 market capitalization of the Company was less than $50.0 million over the consecutive 30 trading-day period ended August 29, 2024 and the Company’s last reported stockholders’ equity as of August 29, 2024 was less than $50.0 million. The Notice does not result in the immediate delisting of the Company’s common stock from the NYSE.

In accordance with NYSE procedures, within 45 days from receipt of the Notice, the Company intends to submit a plan to the NYSE advising it of the definitive action(s) the company has taken, is taking, or plans to take that would bring it into conformity with the continued listing standards. If the NYSE accepts the Company’s plan, the Company’s common stock will continue to be listed and traded on the NYSE during the 18-month cure period, subject to the Company’s compliance with other NYSE continued listing standards and continued periodic review by the NYSE of the Company’s progress with respect to its plan.

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 hat it intends to cure the market capitalization 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. 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/20240905269161/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 received a notice because its average market capitalization was less than $50 million over a 30-day period ending August 29, 2024, and its last reported stockholders' equity was below $50 million, not meeting NYSE's continued listing standards.

What is the deadline for Allurion (ALUR) to submit a plan to NYSE?

Allurion has 45 days from the receipt of the notice to submit a plan to NYSE outlining actions to bring the company into conformity with the continued listing standards.

How long does Allurion (ALUR) have to regain compliance with NYSE standards?

If NYSE accepts Allurion's plan, the company will have an 18-month cure period to regain compliance with the continued listing standards.

Will Allurion's (ALUR) stock continue to trade on NYSE after receiving the notice?

Yes, Allurion's stock will continue to trade on NYSE during the cure period, subject to compliance with other NYSE listing standards and periodic reviews of the company's progress.