Allurion Technologies, a Natick-based medtech manufacturer, is at risk of being delisted from the New York Stock Exchange after receiving a notice the firm is not meeting listing standards.
Allurion announced it had received notice the NYSE had begun delisting proceedings because the company failed to either hold at least $50 million in stockholders’ equity or at least $50 million in total market capitalization over a 30-trading day trading period, according to a Monday filing with the U.S. Securities and Exchange Commission.
In response, Allurion says it will appeal the NYSE’s decision, stating the company has been in regular contact with the stock exchange regarding its plan to regain compliance. The first step of this plan was completed in February, when Allurion gained U.S. Food and Drug Administration premarket approval for the firm’s Allurion gastric balloon system.
“We believe this approval will catalyze the remaining parts of our plan to regain compliance or relist, and we expect our common stock to remain trading on the NYSE while we execute this plan,” Dr. Shantanu Gaur, Allurion founder and CEO, said in a Monday press release.
To support future compliance, Allurion is negotiating with existing creditors and security holders. This includes the previous agreement the firm made with its largest creditor to exchange all outstanding debt securities for shares of preferred stock, which occurred on Feb. 24.
At this time, the delisting notice has no effect on Allurion’s operations. However, the firm warns if it is ultimately delisted, the move could negatively affect the liquidity and market price of its shares, reduce the number of investors willing to hold the stock, and impede its ability to offer equity incentives to employees.
Allurion initially launched on the NYSE in August 2023, reporting a 40% sequential revenue growth in the third quarter of that year, the first fiscal quarter after going public.
Founded in 2009, Allurion produces weight-loss balloons along with a health tracking app and tracking devices.
Mica Kanner-Mascolo is a staff writer at Worcester Business Journal, who primarily covers the healthcare, manufacturing, and higher education industries.
