Allurion Notified by NYSE of Delisting Proceedings
Allurion Technologies has received notice from the NYSE that it intends to initiate delisting proceedings against Allurion after the company was unable to demonstrate that it had regained compliance with Section 802.01B of the listed company manual requiring listed companies to maintain either at least $50M in stockholders' equity or at least $50M in total market capitalization on a 30-trading day average basis. The company has a right to a review of this determination by a committee of the board of directors of the exchange. Allurion intends to appeal, and the company expects its common stock to continue to trade on the NYSE during the appeal process. The company's efforts to regain compliance with the continued listing requirements of the NYSE or gain compliance with the initial listing requirements of another exchange are ongoing and include discussions and negotiations with existing creditors and security holders, as well as capital raising efforts. In furtherance thereof, the company has previously announced an agreement with its largest creditor to exchange all of its outstanding debt securities for shares of preferred stock at an exchange ratio representing a substantial premium to the company's current trading price, subject to certain conditions, and the completion of a warrant inducement transaction on February 24. While the company is working diligently to regain compliance and intends to appeal the NYSE staff determination, there is no guarantee that the company will regain compliance with, and remain listed on, the NYSE, or be able to relist on another national exchange.
