Allurion Technologies, Inc. (NYSE:ALUR), a medical device company, announced today that it has raised approximately $2.3 million in additional funds through a partial exercise of over-allotment options by underwriters in a recent public offering.
This exercise is part of a larger funding effort where Allurion, known for its surgical and medical instruments, previously reported the issuance and sale of 14,406,508 shares of common stock and warrants to purchase 16,567,484 shares at a combined offering price of $1.20.
The New York Stock Exchange-listed company entered into an underwriting agreement with Jefferies LLC and TD Securities (USA) LLC, acting as the representatives of the several underwriters. This agreement also granted the underwriters a 30-day option to buy up to an additional 2,160,976 shares of common stock at the public offering price, which they partially exercised on July 5, 2024, for 1,927,265 shares.
The recent capital raise before deducting underwriting discounts, commissions, and estimated offering expenses, is expected to support Allurion's operations and product development. The company's public offering and subsequent over-allotment exercise follow a name change from Allurion Technologies Holdings, Inc. earlier this year, reflecting its evolving business strategy and focus on industrial applications and services within the medical sector.
Allurion, incorporated in Delaware and headquartered in Natick, MA, has communicated this information in a report filed with the Securities and Exchange Commission on July 5, 2024. Brendan Gibbons, Chief Legal Officer of Allurion Technologies, signed the report, ensuring compliance with the requirements of the Securities Exchange Act of 1934. The company's common stock and warrants are traded under the ticker symbols "ALUR" and "ALUR WS," respectively.
This financial move by Allurion Technologies illustrates the company's efforts to secure additional capital to further its strategic initiatives and strengthen its position in the medical device industry. The information disclosed is based on the company's latest SEC filing.
In other recent news, Allurion Technologies, Inc. announced mixed Q1 2024 financial results and appointed Ojas A. Buch as its new Chief Operating Officer. The company reported a Q1 revenue of $9.4 million, a 14% increase from the previous quarter but a 33% decrease from Q1 2023.
Despite lower year-over-year revenue, Allurion successfully reduced operating expenses and cash burn, while also securing a $48 million convertible senior secured note financing.
Procedural volumes and new app users increased significantly, reflecting a positive trend in the company's operations. On the personnel front, Buch, with a noteworthy 25-year career in the healthcare industry, has taken over the role of COO. His experience includes leadership positions at GE Healthcare and Philips, and most recently, he served as the President of PENTAX Medical – Americas.
These recent developments highlight Allurion's strategic adjustments and operational improvements. The company continues to focus on its mission, which includes transforming lives through innovative weight loss solutions. With the launch of new products like the virtual care suite in the US and expansion into new international markets, Allurion is positioning itself for future growth.
InvestingPro Insights
As Allurion Technologies (NYSE:ALUR) continues to navigate the financial landscape with its recent capital raise, investors and stakeholders may find the real-time data from InvestingPro particularly insightful. With a market capitalization of $71.96 million, Allurion's financial health and market performance can be further understood through a few key metrics.
The company has shown an impressive gross profit margin of 76.32% over the last twelve months as of Q1 2024, indicating strong operational efficiency in its cost management. However, this is juxtaposed with a significant revenue decline of 25.6% during the same period, highlighting potential challenges in sales or market demand.
Investors should note that Allurion's stock price has experienced high volatility, often moving counter to market trends. This could represent both a risk and an opportunity for traders looking for short-term gains, as evidenced by the substantial 26.3% return over the last week.
Yet, the company's longer-term performance shows a steep price decline, with a 83.19% drop over the last year, reflecting investor concerns about its future profitability and cash flow, as the company is not expected to be profitable this year according to analysts.
For those considering an investment in Allurion Technologies, it is important to weigh these factors carefully. Additional insights are available, with InvestingPro offering more tips to help guide your decision-making process. For a deeper analysis, consider using the special coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription at InvestingPro, where 13 additional InvestingPro Tips are available to provide a comprehensive understanding of Allurion's financial position and market behavior.
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