Allurion Technologies, Inc. Announces Reverse Stock Split
Allurion Technologies (NYSE: ALUR) announced a 1-for-25 reverse stock split effective January 3, 2025. The split will reduce outstanding shares from approximately 67.8 million to 2.7 million, with no fractional shares issued. Trading on NYSE will begin on a split-adjusted basis on January 3, 2025.
The decision follows NYSE's notification on August 12, 2024, regarding non-compliance with the minimum $1.00 per share requirement. Proportional adjustments will be made to equity incentive plans, convertible notes, and warrants. Post-split, public warrants (ALUR WS) will be exercisable for 0.056818 shares at $202.50 per share.
Allurion Technologies (NYSE: ALUR) ha annunciato un frazionamento azionario inverso 1 per 25, efficace dal 3 gennaio 2025. Questo frazionamento ridurrà le azioni in circolazione da circa 67,8 milioni a 2,7 milioni, senza emissione di azioni frazionarie. Le contrattazioni sulla NYSE inizieranno con il nuovo numero di azioni il 3 gennaio 2025.
La decisione segue la notifica della NYSE del 12 agosto 2024, riguardante la non conformità con il requisito minimo di $1,00 per azione. Verranno effettuate modifiche proporzionali ai piani di incentivazione azionaria, alle obbligazioni convertibili e ai warrant. Dopo il frazionamento, i warrant pubblici (ALUR WS) saranno esercitabili per 0.056818 azioni a $202,50 per azione.
Allurion Technologies (NYSE: ALUR) anunció un desdoblamiento de acciones inverso 1 por 25 efectivo el 3 de enero de 2025. El desdoblamiento reducirá las acciones en circulación de aproximadamente 67.8 millones a 2.7 millones, sin emisión de acciones fraccionarias. La negociación en la NYSE comenzará sobre la base ajustada al desdoblamiento el 3 de enero de 2025.
La decisión sigue la notificación de la NYSE del 12 de agosto de 2024, sobre el incumplimiento del requisito mínimo de $1.00 por acción. Se realizarán ajustes proporcionales a los planes de incentivos de capital, a los bonos convertibles y a las opciones. Después del desdoblamiento, las opciones públicas (ALUR WS) serán ejercitables por 0.056818 acciones a $202.50 por acción.
Allurion Technologies (NYSE: ALUR)는 2025년 1월 3일에 시행되는 1대 25의 주식 병합을 발표했습니다. 이 병합으로 발행 주식 수는 약 6780만 주에서 270만 주로 줄어들며, 분할 주식은 발행되지 않습니다. NYSE에서의 거래는 2025년 1월 3일부터 병합 조정된 기준으로 시작됩니다.
이 결정은 2024년 8월 12일 NYSE의 통지에 따른 것으로, 주당 최소 $1.00 요구 사항을 충족하지 못한 것과 관련이 있습니다. 자기 자본 인센티브 계획, 전환 채권 및 워런트에 비례 조정이 이루어질 것입니다. 병합 후, 공공 워런트(ALUR WS)는 주당 $202.50에 0.056818주를 행사할 수 있습니다.
Allurion Technologies (NYSE: ALUR) a annoncé un regroupement d’actions inversé au taux de 1 pour 25, effectif à partir du 3 janvier 2025. Ce regroupement réduira le nombre d’actions en circulation d’environ 67,8 millions à 2,7 millions, sans émission d’actions fractionnaires. Les transactions sur la NYSE commenceront sur une base ajustée au regroupement le 3 janvier 2025.
Cette décision fait suite à une notification de la NYSE du 12 août 2024 concernant le non-respect de l’exigence minimale de 1,00 $ par action. Des ajustements proportionnels seront effectués sur les plans de primes en actions, les obligations convertibles et les bons de souscription. Après le regroupement, les bons de souscription publics (ALUR WS) pourront être exercés pour 0,056818 actions à 202,50 $ par action.
Allurion Technologies (NYSE: ALUR) kündigte einen Rücksplit in einem Verhältnis von 1 zu 25 an, der am 3. Januar 2025 wirksam wird. Der Split wird die ausstehenden Aktien von ca. 67,8 Millionen auf 2,7 Millionen reduzieren, ohne dass Bruchstücke ausgegeben werden. Der Handel an der NYSE beginnt am 3. Januar 2025 auf Basis des angepassten Splits.
Die Entscheidung folgt einer Benachrichtigung der NYSE vom 12. August 2024 über die Nichterfüllung der Mindestanforderung von 1,00 $ pro Aktie. Proportionale Anpassungen werden an Eigenkapitalanreizplänen, wandelbaren Abschlüssen und Warrants vorgenommen. Nach dem Split können öffentliche Warrants (ALUR WS) für 0,056818 Aktien zu einem Preis von 202,50 $ pro Aktie ausgeübt werden.
- Reverse split aims to cure NYSE minimum price requirement deficiency
- No shareholder dilution as fractional shares will be rounded up to whole shares
- Automatic adjustment of all equity instruments maintains proportional value
- Company received NYSE delisting warning due to share price falling below $1.00
- Reverse split indicates company's struggle to maintain minimum share price naturally
Insights
This reverse stock split represents a critical defensive maneuver to maintain NYSE listing compliance, as ALUR's stock has traded below the
The timing aligns with the 180-day compliance deadline following the August 2024 NYSE notification. While reverse splits don't fundamentally change company value, they often signal financial distress and typically face negative market reception. For micro-cap companies like ALUR with a
The comprehensive adjustment of convertible notes, warrants and equity incentives maintains proportional ownership but adds complexity to the capital structure. Post-split warrant adjustments, particularly the
The board's decision to implement this aggressive 1:25 reverse split ratio signals serious concerns about the company's market position and investor confidence. While technically preserving NYSE listing status, this corporate action typically serves as a red flag for institutional investors. The timing, set for January 2025, provides minimal runway for natural price recovery, suggesting management sees no near-term catalysts to organically lift the stock price.
The automatic rounding up of fractional shares, while shareholder-friendly, could create minor dilution and additional costs. The comprehensive adjustment of all equity-linked securities demonstrates proper governance procedure but adds operational complexity. This move may temporarily satisfy listing requirements but does little to address underlying business challenges driving the stock's decline.
The reverse stock split will take effect at 12:01 a.m. Eastern Time on January 3, 2025, and the Company’s Common Stock will begin trading on a split-adjusted basis on The New York Stock Exchange (“NYSE”) as of the opening of trading on January 3, 2025. The CUSIP number of 02008G 201 will be assigned to the Company’s Common Stock when the reverse stock split becomes effective.
When the reverse stock split becomes effective, every twenty five (25) of the Company’s issued shares of Common Stock will be combined into one (1) issued share of Common Stock, without any change to the par value per share. This will reduce the number of outstanding shares of Common Stock from approximately 67,781,585 million shares to approximately 2,711,263 million shares.
No fractional shares will be issued in connection with the reverse stock split. Stockholders who would otherwise hold a fraction of a share of Common Stock of the Company will automatically be entitled to receive an additional fraction of a share of Common Stock to round up to the next whole share.
Proportional adjustments will also be made to the number of shares of Common Stock awarded and available for issuance under the Company’s equity incentive plans, as well as the exercise price and the number of shares issuable upon the exercise or conversion of the Company’s outstanding stock options, restricted stock units and other equity securities under the Company’s equity incentive plans. Additionally, all outstanding convertible notes will be adjusted in accordance with their terms, which will, among other changes to the convertible note terms, result in proportionate adjustments being made to the number of shares issuable upon exercise of such convertible notes and to the exercise and redemption prices of such convertible notes. All outstanding warrants will also be adjusted in accordance with their terms, which will, among other changes to the warrant terms, result in proportionate adjustments being made to the number of shares issuable upon exercise of such warrants and to the exercise and redemption prices of such warrants. Specifically, following the effectiveness of the reverse stock split, every twenty five (25) shares of Common Stock that may be purchased pursuant to the exercise of public warrants will represent one (1) share of Common Stock that may be purchased pursuant to such warrants. Accordingly, for the Company’s warrants trading under the symbol “ALUR WS”, each whole public warrant will be exercisable for 0.056818 shares of common stock at an exercise price of
Stockholders with shares held in book-entry form or through a bank, broker, or other nominee are not required to take any action and will see the consequence of the reverse stock split reflected in their accounts on or after January 3, 2025. Such beneficial holders may contact their bank, broker, or nominee for more information.
The reverse stock split ratio approved by the Board of Directors is within the previously disclosed range of ratios for a reverse stock split authorized by the stockholders of the Company at the 2024 Annual Meeting of Stockholders of the Company held on December 16, 2024.
On August 12, 2024, the Company received a letter (the “Minimum Price Requirement Letter”) from the staff at the NYSE notifying the Company that, for the 30 consecutive trading days prior to the date of the Minimum Price Requirement Letter, the closing bid price for the Common Stock had been below the minimum
The Company believes that the reverse stock split will increase the market price for its Common Stock and cure the deficiency in the Minimum Price Requirement.
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, ProcedurelessTM 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 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
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
Forward-Looking Statements
This press release may contain certain forward-looking statements within the meaning of the
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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
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