Allurion Technologies Announces Reverse Stock Split
Allurion Technologies, Inc. (NYSE: ALUR), a company dedicated to ending obesity, has announced that its Board of Directors has approved a one-for-twenty-five reverse stock split of the Company’s common stock, effective January 3, 2025. This reverse stock split is aimed at increasing the market price of Allurion Technologies’ shares and ensuring compliance with the NYSE’s minimum price requirement for continued listing.
What the Reverse Stock Split Means
Starting at 12:01 a.m. Eastern Time on January 3, 2025, Allurion Technologies’ common stock will begin trading on a split-adjusted basis on the New York Stock Exchange (NYSE). The reverse stock split will combine every twenty-five (25) existing shares of common stock into one (1) new share. As a result, the number of outstanding shares will decrease from approximately 67.8 million shares to about 2.7 million shares, with no change to the par value per share. The new CUSIP number for the common stock will be 02008G 201 once the split is effective.
Impact on Shareholders
Shareholders will not receive fractional shares as a result of the reverse stock split. Those who would otherwise be entitled to a fraction of a share will automatically receive an additional fraction to round up to the next whole share. This ensures all shareholders will continue holding whole shares after the split.
Additionally, proportional adjustments will be made to the number of shares available under Allurion Technologies’ equity incentive plans. This includes changes to the number of shares and exercise prices for outstanding stock options, restricted stock units, and other equity securities issued by the Company. Convertible notes and warrants will also be adjusted to reflect the reverse stock split. For example, after the reverse stock split, each public warrant will be exercisable for 0.056818 shares of common stock at an exercise price of $202.50 per share, which is based on the previous exercise ratio before the split.
What Stockholders Need to Do
Stockholders who hold shares in book-entry form or through a bank, broker, or other nominee will not need to take any action. The reverse stock split will be automatically reflected in their accounts on or after January 3, 2025. Shareholders with any questions can reach out to their bank, broker, or nominee for more details.
Why Allurion Technologies is Doing This
The reverse stock split is part of Allurion Technologies’ efforts to meet the NYSE’s continued listing requirements. On August 12, 2024, the NYSE notified the Company that its common stock had been trading below the required minimum price of $1.00 per share for 30 consecutive trading days. To remain listed on the NYSE, Allurion Technologies is implementing the reverse stock split to raise the stock price and address the deficiency.
Allurion Technologies’ Mission and Weight Loss Program
Allurion Technologies is committed to fighting obesity, a major global health issue. The Company’s Allurion Program includes the Allurion Gastric Balloon, which is the world’s first swallowable, procedureless intragastric balloon for weight loss. This balloon is part of a comprehensive weight loss platform that also includes the Allurion Virtual Care Suite. The Virtual Care Suite offers patients access to the Allurion Mobile App, Allurion Insights for healthcare providers, and the Allurion Connected Scale. These tools help customize and manage weight loss therapy, providing a holistic approach to weight management that incorporates medical, nutritional, and surgical treatments.
While the Allurion Gastric Balloon is still an investigational device in the United States, it has already been successfully used in many other regions to help patients achieve lasting weight loss without the need for surgery.
Allurion Technologies remains focused on expanding its innovative solutions to help people struggling with obesity. By offering non-invasive, effective weight loss options like the Allurion Gastric Balloon, the Company is playing a key role in addressing the global obesity crisis. As it continues to grow, Allurion Technologies is committed to its mission of helping people live healthier, longer lives.
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